Product Placement Marketing. Agenda Warm-up –Sales Process Questions 7-12 Scripts & Videos / Role...
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Transcript of Product Placement Marketing. Agenda Warm-up –Sales Process Questions 7-12 Scripts & Videos / Role...
Product PlacementProduct 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 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 PlacementProduct 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 PlacementProduct 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?