Transcript Disadvantages of Product Placement

Product Placement
Marketing
Agenda
• Warm-up
– Sales Process Questions 7-12
• Scripts & Videos / Role Plays for Sales Due by end of
hour
• Product Placement Video
– Truman Show is 102 minutes
• Finish your packet of notes regarding the sales process
– Turn that in
– Video / Role Plays in class
Product Placement
• What is Product Placement?
– Product Placement is placing products &/or services
in the media as a method of advertising
• Allows for global advertising
• Product is embedded in the film so the viewer can’t escape it
– No mute button, no fast forward or skipping of commercial
– Began in the early 1940’s but has greatly increased
since the late 1980’s
Product Placement
• What are the advantage of Product
Placement?
– New potential Customers
• Cadillac through the Matrix
– Increased Sales
– Mutually beneficial relationships
• Company invests once and there is endless amount of views
– Customers see a celebrity using the product which
causes its value increases
• Tom Cruise
• Sylvester Stallone
Product Placement #1
"ET"
increased sales of
Reese’s Pieces by
70%
Product Placement Example #2
• "The Firm"
increased Red
Stripe beer sales
53%
Product Placement Example #3
• James’ Bonds
"Golden Eye" sold
3600 BMW Z3
roadsters in Atlantic
Blue 3 weeks before
the film opened and
the car was back
ordered by 8000 units
Product Placement Example #4
• "Risky Business" tripled
Ray-Ban Wayfarer sales
from 18,000 to 360,000 in
the first year to 720,000
the next year.
• The company was able to
increase the price from
$30 to $50.
Product Placement Example #5
• "Days of Thunder"
increased sales of
Mello Yellow to $154
million dollars
Product Placement
• What are the disadvantages of Product
Placement?
– Easy to advertise “ethically charged” products
• Guns, Alcohol, & Drugs
• Promotes products as appealing to a large audience
• Promotes items to a younger audience
– Huge marketing risk
• Bad movie, bad image
• Can be seen as annoying to viewers
Coca-Cola in Both Films
Product Placement
• How much do companies pay for product
placement?
– Some companies are willing to millions of dollars
• Dependent on amount of exposures or views
– Coffee Beanery in Deep Impact
• 20 empty cups
– Popeye's Chicken
• Provides crew lunch ($40,000 for a movie set)
• Bring lunch, scene ends up on chopping block
– Apple products are used frequently but they claim they
never pay for placement
Product Placement
• What Marketing Risks Exist with Product
Placement?
– Cannot predict the success of movies and shows
– Negative associations between products and films
– False Advertisement
• Celebrity uses product
– Clutter
Product Placement
• Concept of Product Placement is
illustrated explicitly in the movie The
Truman Show
• From viewing this film you should
understand
– What product placement is
– How it is used in movies & television
– Why it is used as a form of advertising
Truman Show
• Complete Sales Packet of Notes as you
watch
• Will have 2 questions on film at the end to
answer.
Product Placement
• List at least Six Examples of Product Placement
• Why is it effective for selling or promoting a product
image?
• Why might a company choose to use product placement
in a show versus investing in a commercial
• Do you think the Truman Show creators were unethical?
– Is it fair?
– Is it Right?
– Doing what is in the best interest of others?
• From a business experience do you think it is a good
idea?