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Chapter 2
2. Chapter 2: Review of the Literature
2.1. History of global product placement
2.2. History of Indian product placement
2.3. Production
2.4. The product placement process
2.5. Product placement effectiveness
2.6. Development of product placement practice
2.7. Product placement in integrated marketing communications mix
2.8. Product placement in marketing communications mix
2.9. Characteristics of product placement communications
2.10. Ethics of product placement
2.11. Benefits of product placement
2.12. Potential disadvantages in product placement implementation
2.13. Product placement media
2.14. Organization for product placement and practical implementation
2.15. Product placement strategy formation
2.16. Efficacy of product placement: Brand recognition and recall
2.17. Factors affecting recognition and recall of product placement
2.18. Important out come from literature review for this study
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2.1 History of global product placement
Product placement started as a periodic barter arrangement for lowering film and television
costs is now a vehicle for multimillion-Rupee integrated promotional campaigns‖ (Karrh, McKee,
& Pardun, 2003). Friedman (1985) found that the incidence of brand name appearances within
both best-selling novels and popular songs has continually and substantially increased since
World War II. Because of the success of product placement, it has become popular across the
media. The practice is prominent in television shows (Avery & Ferraro, 2000; Russell, 2002;
Taylor, 2003), movies (Gould, Gupta, & Grabner-Krauter, 2000; Delorme & Reid, 1999), music
videos (Chang, 2003), and computer/video games (Nelson, 2002). In recent years, marketers
are now moving more aggressively, seeking star roles for their brands in feature films (D‘Orio,
1999; McCarthy, 2000), video games (Gunn, 2001; Rodgers, 2002), magazines (Fine, 2004),
and television shows (Elliot, 2002; Vagnoni, 2001). The content analysis conducted by Galician
and Bourdeau (2004) showed that automobiles were the leaders in Hollywood product
placements in 1977, 1987, and 1997. Among all different types of media, product placement
has become a multi-million dollar business, as marketers search for new methods that will give
exposure to specific brands and products
Past product placement research has identified several program-related, placement-related and
viewer-related variables. However, their integrative effects on viewer attitudes to the brand have
not been studied from an empirical perspective. Research integrates key constructs from these
categories in a unified model, examines their relative strength. Key findings reveal the central
position of attitude to product placement.
Product placement in the media has been viewed as a fusion of advertising and publicity
(Balasubramanian, 1994). It is believed that in the near future, there is a good possibility that
product placement will be an important revenue source for screen television networks
(Schneider, 2002). As the practice of product placement continues to increase at swift rates,
there is no sign of discontinuance or even slowing down in the near future. It has become a
widely used form of increasing product awareness in various types of media. The increase of
use has spark storm as to whether it should be regulated, and/or even allowed. Critics argue
that the audience is incarcerated and may be unaware of the passive messages that they are
receiving. Studies have noted the increase in product placement; simultaneously consideration
has been given for the audience as receivers of the message. Considering the history and
dimensions of product placement, it can be argued that though product placement is a booming
industry, its success is dependent on viewers‘ individually conceived feelings regarding products
and/or services.
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Karrh (1998) estimated that 90% or more of product placements are done on negotiated
basis, where the product or service is traded for publicity in the program. However, more
recently, some deals have been quite large and have included large sums of money being
exchanged for placement services. For example, BMW invested an estimated $20 million on the
placement campaign that launched the Z3 roadster (Hammer & Brown, 1997; Maynard & Scala,
2006). The Z3 made a prominent appearance in the James Bond film Golden Eye, as well as in
most of the advertisements and trailers for the film (Einstein, 1997). Product placements are on
a meteoric rise in the Hollywood. Greater numbers of advertisers are looking for alternatives to
traditional advertising avenues, in search of more effective ways to reach an ever-elusive
audience. Producers‘ desire to achieve realism on screen and the need for alternative sources
of funding are further feeding the exponential growth of product placements and branded
entertainment. It is safe to say that such advertising strategies are here to stay. However, the
United States lawmakers have been largely ignoring the changes that these new advertising
strategies have brought on public programming. These changes bear significant consequences
for consumers and producers alike. Not only does the average viewer have the right to know
when he is being subjected to an advertisement, but producers also need to know what kind of
protection their artistic works will be afforded. (Lee, 2008).
Table No. I Product Placement in Hollywood
Brief Overview over the years
Movie Product (s) Remarks
Scarface (1932) White Owl Cigars $250,000 worth of
Advertising
Dinner at Eight Coca Cola Pictures of Jean Harlow and
(1933) other glamorous stars
swigging soda pop
You‘ll never get rich Chesterfield cigarettes Starring Fred Astaire
(1941)
The African Queen Gordon‘s Gin Product thrown overboard
(Early 1950s) by Katherine Hepburn‘s
character in the movie
Superman II (1979) Marlboro
E.T. (1982) Reese‘s Pieces Sales up 65%
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Never say never again Winston and Camel cigarettes Sean Connery and others
(1982) shown smoking these
Brands
Risky Business Ray-Ban Sunglasses
(1983)
Bull Durham (1988) Jim Beam Whiskey
License to Kill (1988) Lincoln, Larks Aston Martin replaced by
Lincoln Continental Mark
VII; free cars donated for
the film
Home Alone (1990) Budget Rent-a-Truck
Groundhog Day Jim Beam Whiskey
(1993)
The Firm (1993) Stripe Beer Sales increased by more
than 50%
Strictly Ballroom Coca Cola
(1993)
Pulp Fiction (1994) McDonald‘s & Burger King A lengthy conversation
about the two brands
Goldeneye (1995) BMW Z-3 One of the most successful
new-car launches ever
Jerry Maguire (1996) Reebok Backfired, company bad-
mouthed in movie by Cuba
Gooding Jr.
Anastasia (1997) Chanel perfume Product placement in an
animated movie; Chanel did
not pay for the visibility,
though
Men in Black (1997) Ray-Ban sunglasses Worn by Will Smith
Tomorrow Never Visa card, Avis car rentals, Reckless use of products
Dies (1997) BMW cars and motorcycles, throughout the movie; Over
Smirnoff vodka, Heineken beer, $100 million placement deal
Omega watches, Ericsson cell
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phones, L'Oreal makeup
Armageddon (1998) Ray-Ban Sunglasses
Small Soldiers (1998) Hasbro action toys Movie based on action toys;
script revolved around these
toys made by Hasbro
Where the heart is Wal-Mart Character lives in the store
(2000)
I am Sam (2001) Starbucks, Nike Sean Penn shown as an
employee of Starbucks
The Italian Job (2003) Mini Coopers
Shrek 2 (2004) Baskin-Robbins ice cream Shrek & Fiona drive
through a town that has a
Baskin-Robbins store; three
new flavors tied to the
movie created in real life
Pearl Harbor Pepsi (Coke) Negative placement for
Coke as Coke bottles shown
as being used as blood
containers, while characters
sipped Pepsi sodas
The Faculty Tommy Hilfiger Cast given outfits from the
Tommy Hilfiger Jeans line
in exchange for appearing in
an ad
Back to the Future Pepsi products
Demolition Man Taco Bell ―In the future, everything is
Taco Bell….‖
You‘ve Got Mail AOL, Apple, IBM and
Starbucks
Austin Powers Pepsi and Starbucks
Cast Away (2000) FedEx and Wilson
Men in Black II Mercedes Benz, Ray-Ban
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sunglasses, Sprint, Burger King
Wayne‘s World Nuprin, Pepsi, Pizza Hut, Characters shown hawking
Reebok these products
Josie and the America Online, American
Pussycats Express, Bebe, Billboard
Magazine, Bugles, Campbell's
Soup, Coke, Entertainment
Weekly Magazine, Evian, Ford,
Gatorade, Kodak, Krispy
Kreme, McDonald's, Milky
Way, Motorola, Pepperidge
Farm Cookies, Pizza Hut,
Pringles, Puma, Ray-Ban, Sega,
Starbucks, Steve Madden,
Target, and T.J. Maxx
Herbie, The Love Bug Volkswagen Beetle
RoboCop Ford Taurus
Back to the Future DeLorean
Smokey and the Pontiac Trans Am
Bandit
The world is not BMW Z8
Enough
Lara Croft : Tomb Jeep Wrangler Rubicon
Raider
I, Robot (2004) Audi RSQ concept car Audi created the concept car
for the movie
The Matrix (1999) Duracell batteries
Beauty Shop Fiji Water
What Women want Nike
Panic Room Evian
My Big Fat Greek Windex
Wedding
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You‘ve Got Mail AOL, Starbucks, New York Film‘s title changed from
Times ―You have mail‖ to
―You‘ve got mail‖ to match
the AOL phrase exactly
Jurassic Park Ford Explorer
Jurassic Park 2 Mercedes Benz SUV
Rocky Wheaties, Hugo Boss
Max Keeble‘s Big Nike, Coca Cola, Apple Coke being consumed in the
Move Computers cafeteria
How High Nike, Adidas, Sam Adams beer
O Puma
Bandits Adidas, Pepsi
The One Pepsi
Hardball Pepsi
Hearts in Atlantis Pepsi
Life as a house Coca Cola
Serendipity Coca Cola, USA Today
Newspaper
Glass House Coca Cola, AOL Coke shown being
consumed at dinner and at
the movies, main character
shown using AOL
Rat Race Coca Cola
Bubble Boy Coca Cola
Kate & Leopold Apple computers, Colgate, Hugh Jackman shown
Gillette, Hungryman frozen TV trying to use these products
Dinners
Slackers Apple computers
Domestic Disturbance MSN An MSN account shown
being used by John Travolta
Snow Dogs Kawasaki, Powerade, ESPN
Orange County Spongebob Squarepants This cartoon is popular with
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(Nickelodeon cartoon) kids as well as teenagers
and adults
Black Hawk Down USA Today newspaper
Vanilla Sky Kodak and Marriott Hotels Billboards for these
products shown in the
background
The Caretakers Pepsi
Good Will Hunting Dunkin‘ Donuts
American Gigolo Giorgio Armani
Boogie Nights Fresca, 7-Up, Chevrolet References to the mentioned
Corvette Brands
Forrest Gump Dr. Pepper Incorporated into the
Dialogues
Grease Philip Morris cigarettes
Rocky II Philip Morris cigarettes
Little Shop of Horrors Philip Morris cigarettes
Crocodile Dundee Philip Morris cigarettes
Die Hard Philip Morris cigarettes
Who framed Roger Philip Morris cigarettes
Rabbit
Field of Dreams Philip Morris cigarettes
Analyze This Merrill Lynch
2.2 History of Indian product placement
The very first product placement that can be noticed is in the movie called Bobby, in 1970 for
Rajdoot Motorcycle. It can be said that the product placement has reached Hindi Film industry,
the Indian cinema very late but now has been in focus of the marketers for advertising their
products. The product placement is taking place in both ways verbal or visual or both. The
products that are marketed range from fast moving consumer goods (FMCG) to high interest
products like automobiles. The product placement mainly has three components namely, the
production houses, the product placement agencies and the clients/ companies. Earlier the
producers contacted the companies directly but as the film Industry has grown and so also the
marketing of products, there is a need for the placement agencies to step in. The product
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placement agencies may be the advertising agencies or in-house marketing departments of the
companies. The agencies mediate between the clients and the producers by providing scripts
and specifications about how better the product can be placed and viewed by the audience.
(Russel & Belch, 2005).
Although the format of Hindi film industry has changed over the years, a typical Hindi film is
histrionic filled with song and dance, sophisticated sets, and bright and delicate costumes based
on values and emotions such as family, love and religion. Cheesy and colorful with rhythmic
melodies, Hindi films resemble Hollywood musicals to a certain degree. The storyline and the
plots of Hindi movies follow a predominantly formulaic tradition. At the center of the plot is often
a love story, where lovers overcome great odds to be together. A disparity on the theme is the
revenge saga, where a common man victimized by a powerful villain overcomes great odds to
take revenge. These central themes are mixed with liberal doses of action, romance, comedy,
thrill and dynamic twists and turns. Most Hindi films are developed around customary themes of
star-crossed lovers, censorious families, protective love triangles, corrupt politicians, villainous
rogues, dramatic reversals of fortune and unbelievable coincidences. However, recent
developments have indicated that some filmmakers are moving away from the formulaic
romantic or action movies. They have begun to segment their audiences and are trying to
develop formats and themes that fill all niches (Sinha, 2009). Indian audiences are now exposed
to different genres and styles and have come to expect good scripts ranging across varying
storylines.
Filmmakers can no longer ignore the diversity of their viewers and are diversifying their
product portfolio to reach a greater number of audiences. Formulaic or otherwise, various
threads of influence are found in Hindi Film industry films, primarily the-story-within-a-story
tradition from Indian epics, the song-and-dance-routine from Hollywood musicals, the village
tradition of epic narration and the spectacle and melodrama of Indian theatre.
Critics, historians and authors have acknowledged that Hindi films reflect an assimilation of
different influences starting from theatre to Hollywood; however, this same group acknowledges
that despite the inspiration, Hindi films are thematically and structurally distinctive. ( Sen, 2010)
Hindi films have come a long way from the Lumpier tradition of ―placing the world within one‗s
own reach to one where the magic of illusion and escapism is lightly draped over the thick fabric
of reality. In other words, the Indian film industry enchants viewers by presenting them with a
different world from their own. Though Hindi films are more ―exhibitionistic and less indirect in
nature than Hollywood films, Indian audiences watch them to escape the real world. The Hindi
Films typically showcase a world that is conjured and entertaining but with strong links to
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emotions and values that are real and palpable (Hirsch, 2009). In this context, Hindi films are
basically ―blend products where global references have been adapted to a more Indian context
. (Kavoori and Punathambekar, 2008).
Films enable fleeting inner emotions with universal appeal to transcend time, place and
language through the permanent images of cinematic expression. Although a dream can only
be remembered after the fact, a film can be watched over and over on videotape or digital video
disk (DVD) (Halpern, 2003). This illusory nature of films provides filmmakers the creative license
to integrate exotic locations, elaborate set designs and sophisticated costumes. It also allows
filmmakers to create their own rules of logic to meet a variety of artistic and marketing needs.
The song and dance routines in Hindi films play a special role in product placement. An
example of this can be seen in the box-office hit Kuch Kuch Hota Hai. A total of 144 product
placements are featured in the movie, which is an emotional love story set against a college
backdrop. The story of the film shows the relationship between three college students and
provides the perfect setting for promoting youth brands. The film is replete with fashion brands
like Polo Sport, GAP, Speedo and others that target youth, like Pepsi and Nescafe. The first
branded attire shown is a DKNY shirt worn by the female protagonist in the 19th minute of the
film. In the following ten minutes fifteen different clothing brands are presented on screen. The
first song and dance sequence of the movie, showcases brands like DKNY, GAP, D&G and
Pepsi. The song and dance sequence is extraneous to the plot of the film and is a flight of
fantasy that allows the director to integrate brands and entertain at the same time. In general,
identified clothing labels are predominantly printed or sewn on T-shirts. In addition, brands also
occur on sweatshirts and sportswear. This is often presented in scenes illustrating sports and
leisure activities. Mostly, people wearing these products are 20 and 30 year old students who
have rich parents, enabling them to purchase higher-end designer clothes. For Pepsi, a brand
attempting to connect with Gen Y, the movie was a perfect fit. The song that displays the bond
and camaraderie between two friends and reflects the easy-going-air of college life was
something to which Pepsi‗s target audience could relate. This example demonstrates how
product placement can be easily integrated into the formulaic nature of the films and their
ethereal settings. Given the ease with which products could be placed, financers, directors and
producers alike see product placement as a way of balancing marketing and production costs.
(Sen, 2010).
All film productions in Hindi Film industry fall into two categories – mainstream, commercial,
high budget films produced by well known and larger production houses; and low-budget, niche
films made by an individual producers or smaller and less-known production houses.
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There is no fixed rule, however, for how the films are made, financed or distributed. In
some cases the producer may double as the financer while in other situations the producer may
obtain funds from financial institutions. Distributors sometimes finance the film for exclusive
distribution rights. (Sen, 2010).
The analysis of 30 movies showed that there were a total of 299 product placements, an
average of 10 for each movie. Of the 299 placements, 129 were found in Bollywood movies and
170 were found in Hollywood movies. Almost 200 different brands were identified in the selected
30 movies, out of which a few were common in both the industries. The number of brand
appearances in Hollywood movies varied from 10 to 50 per year, as compared with Bollywood’s
25 to 30 per year (Gokhale, 2010).
Indian film industry is becoming more systematic and structured in every function and activities.
Priya Village Roadshow which began as a movie theater in the nation‗s capital region,
expanded into distribution and recently also started dabbling in production and finance. Adlabs,
a key Indian film processing company, recently attracted huge investments from India‗s biggest
telecom corporation, Reliance, and moved into production, exhibition, distribution and finance of
films. UTV, which started out as a television production company soon moved into film
production, marketing and distribution and is currently one of the biggest domestic film
distributors (Lorenzen and Taeube, 2007). Percept Picture Company was created by Percept,
an advertising agency in a joint venture with the Hindi TV channel and film distributor Sahara
One, to tap the potential of in-film marketing and to ensure a constant supply of films and film-
related content to Sahara One‗s TV channel. Sahara One did not succeed in integrating film
production in its joint venture with Percept Picture Company, and exited the venture, focusing
upon film distribution and finance. Percept now produces finances and distributes films on a
much larger scale. Several film productions, distribution and exhibition companies have been
listed on the Indian stock exchange and have issued shares to the public. There is a growing
interest by global studios in the Indian film market; these studios are increasingly producing and
distributing Hindi movies.
Current trends in Hindi Film industry show that more than looking into scripts and turning
attention to creative details like integration, brand marketers consider factors like potential for
box-office success, lead actors, frequency of placements, length of placements, and so on.
However, the study suggests that viewers give little consideration to whether the lead actor is
the brand ambassador for the product, the movie earns box office success, the brand is
mentioned in the dialogue and the product is shown frequently and/or for a long period of time.
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Though the above-mentioned factors are deemed inconsequential by viewers, the study
suggests that there are certain other key placement characteristics such as integration, usage
and familiarity that play a role in influencing purchase decisions. Consider the movie where the
hero wakes up in the morning and gargles with Pepsi. The placement of the brand is so
seamless that the viewer does not question it. What the director does is portray a lifestyle that is
young, urban, cool yet irreverent; a tone that is carried out throughout the movie.
Table No. II Product Placement in Hindi Film industry
Brief Overview over the years
Movie Product (s) Remarks
Taal
Coca-Cola,Thums
Up,BMW,Screen 20% of the Taal
Magazine,Sony Cam,Diet production budget came
Coke,Nescafe,MTV,BPL,Honda just from Coca-Cola.
Rumours also have
it that Subash Ghai
shot two sets of
scenes, one with
Pepsi and the other
with Coke,
Hum Tum Times of India Group, Lays
Koi Mil Gaya Karizmaa. Hero Honda,
Love Ke Liye Kuch Mc Donalds,
Bhi Karega
Dilwale Dulhania
Le Canned Stroh's Stroh's is said to
Jayenge have paid Rs 15 lakh
to the producers for
15 sec display
Jo Jeeta Wohi BSA SLR
Sikandar
Hum Saath Saath Coca-Cola.
Hain
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Chalte Chalte Hyundai Santro, Castrol
Kuch Na Kaho Coca-Cola,Mentos
Baghban Ford Ikon, ICICI Bank, Tata Tea Total benefit to the
producers from
associating with the
brands is in the
range of Rs 3-4
crore.
Khakee Thums Up
Road Tata Safari
An Evening in
Paris Coke
2.3 Production
There are a number of production houses escalating in India, many of which are ventures by
Indian actors. Several stars today largely work under their home production banner, or
selectively undertake a co-production with an established studio. This model has largely come
into play on account of the revenue sharing pattern that is able to compensate the high fees
otherwise demanded by these stars. The Indian film industry is expected to grow at increasing
annual growth rate. The contribution of domestic theatrical revenues to the overall industry pie is
expected to reduce slightly, while the share revenues from cable and satellite rights is expected
to increase going forward .
2.4 The product placement process
The placement of brands and products within films allows an ordinary setting to be
developed for the products which are then portrayed in either conventional or unconventional
everyday situations of use. Furthermore, cinema film allows the use of color, movement and
sound, meaning that products and brands can be shown at their very best, and often with time
frames and a quality of exposure that cannot be equaled by any other communication tool.
Product placement also permits typological segmentation of the public it reaches. Every film has
its own particular identity and this is usually quite evident even in the advertising trailers, which
aim to attract specific sectors of the public. So, product placement is a powerful tool available to
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marketers which can be used to direct corporate communication at a specific public that is well
defined within its own distinctive profile.
Before this medium emerged as an important revenue channel for filmmakers, producers and
placement agencies, product placement was primarily used as a means of surrogate advertising
for products that could not be advertised on regular mass media. Tobacco manufacturers have
for long been accused of promoting smoking through the portrayal of the macho hero who is
depicted brandishing a cigarette and blowing smoke at the villain‘s face. Many critics still feel
that it is a medium for ―hidden but paid‖ subliminal messages. Their worst fears are that it is the
younger generation, generally, that is taken in by the charms of the products being used by their
favorite stars and scrupulous marketers who just want to increase their revenues may exploit
this. Placement of ethically charged products like cigarettes, arms and ammunitions, alcoholic
beverages etc. has long been a point of contention between filmmakers and regulatory
authorities. As mentioned earlier, audiences generally have no means of escaping product
placements embedded in films or television and hence are subconsciously exposed to certain
products that may be harmful for them. Hence, it is extremely important to have in place
regulations that ensure that product placement is used as an effective marketing tool for
products and not as a means for surrogate advertising of forbidden products.
As the product placement industry has boomed in Hollywood, a newly recognized Hollywood
icon is Mark Burnett. Mark Burnett Productions has produced multiple reality television
programs that integrate product placement and advertising clients in ―closer-than-ever
relationships‖ as the practice rapidly expands (Grainger, 2004).
2.5 Product placement effectiveness
Brands are manipulated on occasion because product corporations do not wish to be affiliated
with messages from movies and television shows, or because the product is being portrayed in
a defamatory light. A tactic called brand-modification has been used in some studies to evade
this problem. While the purposes for the modifications vary, some studies demonstrates that the
minor changes are not significant enough to cause the viewer to realize that he or she is seeing
something other than an authentic brand.
Much of the time brand placements are made at a cost for the brand. The results of these data
show that if the alternative to product placement is brand modification, then the well-known
branded products have little need to pay for the placement (as the modified products are
apparently still an advertisement for the authentic brands). Congruently, products or logos that
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are not as well-known are not as well-advertised by modifications. It is possible that a brand
logo would have been more recognized and had greater recall if the actual brand logo had
appeared in the clip. It is also possible that Sony and Oster could have benefited not only from
the product placement itself, but from the association that Sony and/or Oster would have had to
Washington‘s Oscar-Award-Winning performance, as well.
Due to the nature of the movie or message that was conveyed in Training Day, Sony
and Oster may have deliberately chosen not to place products in the movie. If that was the
case, such product manufacturers need to be aware of the results of this study as it
demonstrated that there was still some recognition and association made with the authentic
brands, and the branded product logos were not manipulated enough to disassociate the
product from the movie. In the interest of the products that become associated to movies for
whatever reason, manufacturers may choose to pursue the establishment of guidelines and
regulations that protect their product from such subtle modifications that most of the viewing
public fails to make any distinction between the actual brand and the brand-modification. There
are brand modifications in movies that viewers associate with authentic products even if the
brands are not being placed as products. While movie producers maintain a feeling of reality by
simple modifications, brand manufacturers could be dissatisfied and unaware of the strength
and consistency of the associations into which brand-modified products are assimilated when
only minor changes are made.
Bartlett‘s (1932) study of schemas told a story and asked the participants to retell the story
multiple times in a longitudinal study. He found that the story used did not fit the expected style
for his audience, and in their retelling of the story, they made accommodations to fit their pre-
existing schema. While in this study, the participants were only asked to recall and recognize
the brand placements once, there were accommodations made to fit prior brand exposure. If the
study had included participants that were 30-year-old homemakers, it would have been likely
that there would have been increased recognition/assimilation of the kitchen appliance brand
modification. Instead, young adults—who have a generally different preexisting knowledge
structure—recall and recognize the Foster label as beer.
Product placement studies have shown that reviews and recognition of such a nature
are shown to benefit the products placed. As also mentioned in the review of literature, subtle
use of products is liked by viewers as the overall feeling is that product placement contributes to
realism and generic props lessen artistic value.
2.6 Development of product placement practice
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Product placements have evolved differently for movies and television. Accordingly, they
are regulated by a different set of rules. Product placements were rare in Hollywood movies until
the 1970s, when producers discovered that costs could be saved and realism achieved by
placing brand-name props directly into the movies. However, it wasn‘t until 1982 that producers
and advertisers alike realized the power of product placements on the consumer. Lee (2008)
discusses that placement of Reese‘s Pieces in the movie The Extra-Terrestrial, sales increased
by 65%. Other branded products soon encountered similar successes. After Tom Cruise wore
Ray-Ban sunglasses in the film Risky Business in 1983, sales of Ray-Bans skyrocketed by 55%.
Product placement in television began quite differently from product placement on the silver
screen. It was not uncommon for advertisers to sponsor entire television programs, with
advertising agencies playing key production roles in the initial decades of television. Thus,
product placements were commonplace. This began to change in the 1950s, when the Federal
Communications Commission (FCC) enacted the ―payola laws.‖ As stipulated by FCC rules,
television producers must now disclose their programs‘ sponsors. However, motion pictures
(even when aired on television), cable programs, and first-run syndication programs are exempt
from the FCC‘s sponsorship disclosure rules. (Lee, 2008)
While product placements and brand sponsorships are hardly new, what is striking about
such practices today is how systematic and sophisticated the efforts to integrate brands and
brand messages into entertainment venues have become. The integration strategy meets the
needs of both producers and advertisers. Producers are looking to nontraditional partners to
finance and support their programs. In addition, they want to achieve authenticity, which means
characters interacting with real products, ones the audience can identify with and ones that it
itself consumes. Advertisers are stimulated by a different set of incentives. Technological
advances such as the Internet, digital video recorders, and video iPods have led to increasing
audience fragmentation, making it harder for advertisers to reach consumers and resulting in
advertisers searching for innovative ways to influence their customers.
Product placement can also be used to develop the image connotations of an existing product.
In this case it is necessary to define the image characteristics of products which, although they
have been on the market for some time, are almost totally interchangeable with competitive
products because they are part of a traditionally poorly differentiated supply, as in the case of
mineral waters. In fact, the qualifying effect that a film can have for a brand as a result of
product placement is subject to the transience of memory. On the other hand, the brand
survives longer than one‘s memory of the film and the characteristics associated to it in the film,
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and it draws on numerous tools to develop its own distinctive traits. From a long-term
perspective and from the viewpoint of promoting companies, every product placement can
therefore be examined in depth, not only for the benefits it can produce in terms of
communication, but for the transience of the effects developed and therefore for the need to
activate additional tools that become necessary in order to achieve the company‘s
communication objectives. In this sense, product placement must be assessed in relation to the
possibility of its being sustained, in the short term, by other communication initiatives that have
positive repercussions on the film‘s popularity. Companies that have identified product
placement as a tool of corporate communication with particular characteristics seem to be
moving in this direction, i.e. towards the association of product placement with other corporate
communication tools on one hand, and towards the choice of innovative forms of product
presentation in the film and in the promotion of the films and of product placement itself on the
other.
2.7 Product placement as an integrated marketing communications tactic
Product or brand placement as a marketing and communication tool is compelling, yet
unsubstantial. It can generate recall and reinforce brand messaging. However, to affect
purchase behavior and generate sales, brand placements need to be supplemented by other
marketing and advertising activities. To create the desired impact within the overall marketing
mix, brands need to pay close attention to the three C‗s of brand placement as outlined in the
thesis namely, category, consumer and character. Though the conclusions outlined have been
based on a small sample size of possibly similar-thinking individuals, there is some indication
that category, consumer and character are the most important elements in a product placement
initiative. Clearly, more work needs to be done to understand how brand placement can impact
the overall reputation and success of a brand if this field is going to develop in a systematic
manner.
As placements become an increasingly important part of the media landscape, it is critical to
understand how and when they are effective. Friestad and Wright (1994) argue that persuasion
knowledge evolves over time; as consumers become more familiar with a tactic, their
interpretations and evaluations change. They note that as comparative advertising increased in
the 1970s and 1980s, the increased savvy of consumers toward the comparative strategy
altered their reactions to the advertisements. In the same manner, as the consumer develops
more sophisticated persuasion knowledge about less intrusive tactics, such as product
placement, the effects reported in the priming condition may become increasingly common.
25
2.8 Product placement in marketing communications mix
As with other corporate communication tools, where costs and benefits are management
controllable, product placement has its own very distinctive features, which determine the
advantages and limits of its use. As far as advantages are concerned, product placement offers:
• A pre-arranged ‗prominence effect‘
• Planned emergence of products and brands
• Development of active audience interest
• A predetermined level of product and brand crowding
• High audience segmentation
• The opportunity to present product categories for which advertising constraints and limits
may be in place
• Gradual investment
A further feature of product placement is the Pre -determinability of product and brand placed in
a film, in other words, in the corporate communication. Dense placement results in lower
visibility for the corporate communication, which translates into lower efficacy of the
communication media employed. The success of a film, and the profits to be made from it, are
secondary to public and critical appreciation. Film production companies must, therefore, limit
product placement in films. Product placement is constrained by the public‘s ability to accept the
presence of brands in films. Placement should not be perceived as a disruption but rather
accepted as something that furthers the development of the film‘s action. Obviously this doorsill
is extremely variable and depends to a great extent on the viewer‘s demography.
It may be said that product placement is used as a corporate communication tool linked to the
values, methods and timeframes of the work, typically a film, within which it is placed. As such,
placement amplifies the effects of the film on the awareness and perception of the
brand/product, but, at the same time, limits the opportunities available to the company to
intervene or control. On the one hand, this action on active audience interest is constrained by
the variability of the values and success of the medium involved; on the other hand, there lies
the opportunity to work with high impact media, such as cinema and television. However, in the
later case, timeframes and methods of distribution cannot be programmed and this factor limits
any means of forecasting the spatial and temporal distribution of the corporate communication.
Brand placement is most commonly referred to as the practice of displaying or showcasing
branded products in popular entertainment. The public relation function has traditionally used a
variety of media platforms and interpersonal tools to develop and support a brand‗s reputation.
26
Traditional tools like news releases, special events, press kits incorporating varied media have
been typically used to communicate with a brand‗s users and develop a positive relationship
with them. This roster of tools has expanded over the years with public relations practitioners
experimenting with numerous new media tools and approaches.
Practitioners, understanding that members of different publics attend to various channels
differently, have been receptive to experimentation and change in the choice of medium for
message dissemination. In addition, there is a frequent need for public relations practitioners to
position a client‗s product or service in the context of naturally occurring activities and connect
at a more subtle and sub-conscious level with users. A film provides the perfect naturally
occurring context for message dissemination and public relations practitioners use it as a
platform to build positive relationships between organizations and their many publics. Though
not an overt promotion, brand placement is a way of integrating branded products naturally into
the setting, plot, dialogue, background and scene of an entertainment program to increase
visibility among consumers/viewers. Brand placement in some companies has been placed
within the realms of marketing; however, that product placement falls under the umbrella of
public relations and is distinguished from advertising agency placement in that most placements
are not paid for Brand placement primarily impact the reputation and image of the company and
not sales. In fact, most trade and academic research concentrates on the recall value of brand
placements and not on sales impact. This thesis attempt to link brand placement to ethical
concern and thereby, to brand recall.
Initially known as product placement, this practice has been called a variety of names: brand
placement, in-film advertising, branded entertainment and brand integration. Through its
evolution it has also been known as brand casting, brand cameo and embedded marketing. In
this thesis all of these terms are used interchangeably and are collectively described as a
cooperative effort of advertisers and creator of entertainment products in which trademarked
goods are embedded into popular entertainment products in order to encourage their
consumption, prevailing entertainment and artistic concerns (Schejeter, 2005). The Center for
Media and Democracy describes product placement as a form of advertisement‖ that does not
disclose to consumers its promotional intent (Source Watch, 2005). In reality, brand placement
falls in the space between advertising, promotion and entertainment and, for this reason has
been characterized as a amalgam advertisement (Balasubramanian, 1994). Brand placement is
not restricted to films and can extend to television, radio shows, video games, song lyrics, music
videos and plays (Wasko, Phillips and Purdie, 1993). Despite the variety of entertainment
channels, the main purpose of brand placement is the same: generating additional finance for
27
the author, the medium or the production and creating a platform for the advertiser to introduce
brand references into the consumers‗ experience of the entertainment (Russell and Belch, 2005;
Lehu and Bressoud, 2007).
2.9 Characteristics of product placement
Product placement usually involves a promoting company and a movie production company.
The former aims to place a specific product or brand in a given context, while the later searches
for correct remuneration in return for granting visibility to the ‗placement‘. Depending on the
activities performed, the operational aspects of the placement can vary. First of all, some
initiatives are limited to the placement of the promoting company‘s product or brand in the film,
but they may also extend to their management in collateral activities such as advertising posters
or the promotional trailers that launch the film. These initiatives create products that are
separate from the film because they are conceived specifically to market it. The trailers are
destined to have more visibility than the film they promote, and they are communicated by
numerous media and address a far broader target than the audiences who will actually watch
the film. In addition to the actual ‗placements‘, the parties may agree to develop licensing
activities or other types of promotional programmes. Through licensing, cinema production
houses grant other companies the right to exploit characters or images from a film, in exchange
for the payment of royalties. In numerous legal systems, this activity is regulated by a precise
contract and allows the companies involved to develop and market products (and occasionally
services too) that reproduce characters or settings from the film. This form of licensing is very
widespread in the world of children‘s films particularly cartoons and it may take place with or
without the placement being defined. In the first case in particular, licensing defines an
additional element compared to product placement and helps to alleviate relations between film
production and the company promoting the placement. A product placement can also be
associated with other forms of promotion, usually described as cross promotion or back-end
promotion, through which promoting companies back the distribution of the film in which the
product is placed, giving visibility to the film and to the association it establishes with the product
or brand. In these cases, the purpose of the communication is to inform the public of the
existence of a precise product placement, for example, by proposing the main scenes from the
film in which the placement occurs, or by referring to characters from the film in association with
the product to be promoted. The benefits of cross promotion are felt in particular by the
promoting company which can thus make its association with the film known to the general
public, drawing on its recognition and image on the market. On the other hand, film production
28
companies also exploit the advantages of the communication created by the cross promotion,
obtaining greater visibility for the film, which is promoted at the expense of the promoting
company. Depending on the frequency with which this tool is employed, the companies involved
may create organizational units whose purpose is specifically to manage it. In the case of
cinema production Executive Studios are created to systematically manage placements within
the films produced. It will therefore be the Executive Studios that analyze the screenplay, look
for placement opportunities and contact any promoting companies that might be involved.
Promoting companies that invest regularly in placements can set up special units themselves,
as Anheuser-Bush, Ford, AT&T, Kodak and Coca-Cola have done in the United States, to
analyse studios‘ proposals and to collaborate actively on the definition of the best positioning
solutions. Product placement agencies‘ slot in between these players: they are professional
structures that specialize in activating and managing this type of corporate communication tool.
These agencies first appeared in the second half of the 1980s, in the Hollywood area, and they
replaced the specialized units of promoting companies and production houses, or worked with
them, dealing with the operational aspects of the placement process. Their activities start from
an examination of the film in production, envisage the identification of potential placements of
brands and products, and continue with the selection of promoting clients. They manage the
placement on their behalf, draft the contract and protect the customers‘ interests when the
scenes in which the product or brand will be placed are recorded.
The agencies can be contacted directly by promoting companies looking for a placement or by
production companies wishing to identify possible promoters, when the producers are not in a
position to manage the relations that would result from it. The product placement market is
founded on the existence of finite and stable relations between parties that know each other and
can establish trusting relationships. In many cases, it is the bonds of friendship and
acquaintanceship, rather than specific contract clauses that enable a contract to be developed
and respected.
Films do not only create awareness of the products presented, they also influence their image.
In this sense, a product placement in a film or in other forms like television serials, cartoons, etc.
Conveys the message, and transfers its own specific values to it, in the way the latter are
perceived by the audience. The values of a scene or character are known in advance (before
deciding a product placement), while the effects that can be achieved among the audience are
changeable and unpredictable in all their implications. As a result, product placement makes it
possible to plan and define in detail the association between the scene/character/use and the
product/brand during the development of the film, in order to establish the production
29
responsibilities, direction and brand ownership in the contract. However, product placement
cannot programme the hoped-for effects of a scene and the associations it contains. These
effects depend on the associations that the audience makes with the scene and the entire film,
the appreciation on which the success of the film depends and, therefore, the possibility of
expanding or damping the values associated with the brand. In product placement, the choice of
the setting and the characters that the brand is associated with, and the possibility of verifying
its correct positioning during filming, reduces the risk of ineffective or even harmful placements.
2.10 Ethics in product placement
As product placement has become a common marketing tool, products are integrated so
carefully that the audience can be completely unaware of the product presence as a form of
marketing. Because of the possibility that the audience may not be aware of its subjection to
product placement, there is a continual debate as to whether product placement is an ethical
practice. Product placement reaches a captive audience, provides relatively greater reach than
traditional advertising, demonstrates brand usage in naturalistic settings (that could sway an
unaware consumer), and offers an alternative advertising option for alcohol and tobacco, both of
which are restricted from broadcast television (DeLorme & Reid, 1999).
The issue of creative control also brings up the problem of clutter versus exclusivity. With the
rise of product placements, branded has also grown. For example, in the motion picture The
Dukes of Hazzard, about twenty brands were featured, including Beefeater Fun, Budweiser,
Cadillac, Coca-Cola, Dodge, Doritos, Ford, Levi‘s, Miller, Motorola, Nike, Ray-Ban, Tabasco,
Volvo and Yahoo!. Such mass-integration trend begs the question: are these heavily-branded
productions little more than advertisements disguised as entertainment, meant to deceive
consumers who are already paying to view them? Do such integrated media cross the line from
commercial to the non-commercial arena? In the wake of technological advances, such
questions need to be addressed.
The increase of branded entertainment, programs that are built around a brand, has brought
with it a host of new issues. Because the program is built around a specific brand or brands, the
line between entertainment and advertisement is blurred. Essentially, the problem lies in
deciding whether the program remains in the non-commercial sphere, which carries
substantially more rights and privileges, or whether it has entered the commercial sphere.
Amendment may prove to be crucial to how much leeway producers are accorded in using third
party trademarks and publicity rights. In addition, its commercial/non-commercial status will
30
determine whether product claims need to be substantiated. Product claims in non-commercial
programming do not need to be substantiated, which means entertainment programs may show
products being misused or being used to do things they would not be able to do in reality. For
example, a show can feature a bicycle being able to leap over cars at racing-car speed, even
though that specific model would not be able to perform in this manner in real life. The
proliferation of product placements has thus given birth to a variety of issues like, Within what
contexts do product placements deceive or even harm the consumer, Do producers and
advertisers really have a legal right to display products freely and What are the legal regulations
that guide both producers and advertisers?
2.11 Benefits of product placement
There are several reasons why product placement has been the advertisement strategy of
choice in recent years. First, it is cost-efficient. For example, as a film gets aired repeatedly from
its theatrical debut to televised broadcast and home video rentals, the cost of product placement
per thousand exposures decreases to mere paise. Second, it is a chance for brands to be
displayed without other competition.
Third, entertainment programs, whether movies or television shows, can be pre-selected to
target desired consumer groups. In addition, seeing a favorite character or actor use a particular
product can, consciously or subconsciously, be very persuasive to consumers. Associating
brands with actors and contexts allows advertisers to manipulate the images or the usages that
they want associated with their products. Finally, product placements are effective in solving the
ever-increasing rise of ―advertising avoidance,‖ a term that encompasses all tactics that
consumers use to avoid advertisements, from muting audio and flipping channels during
commercial interruptions of their programs to ―zapping‖ them out with the digital video recorder.
All of these factors have contributed to the product placement revolt. Today, product placements
are highly desired by both the advertising and entertainment industries. Contrary to the past,
now ―advertisers clamor for the opportunity to pay for the right to participate in product
placement and more significantly, branded integration opportunities. The rise of product
placements and branded entertainment has brought with it a whole host of issues and
controversies ranging from public policy debates to unsolved legal problems. The issue of
creative control concerns many, including producers and consumers. Moving on the spectrum
from free product placements to payment for specific product integration, the pressure on
producers to defer some creative control to advertisers will be inevitable. Much controversy
31
exists over whether brand-controlled productions are able to remain artistically viable and hold
an audience while refraining from becoming nothing more than infomercials.
2.12 Potential disadvantages in product placement implementation
The placement seems even more seamless. Additionally, viewers also want to see brands in a
more dynamic environment where it is used and tried by characters in films. Static brand
displays such as billboards in the background, brand labels on products that is a part of the set
décor and a mere mention of the brand name in the dialogue does not create positive consumer
impact. The study indicates that it is important for brands to be shown in familiar situations, in
which case brand marketers have to identify scripts and characters that their target customers
can relate to. The study also found that it is equally important for brands to be shown in use.
Hence, it is important to make sure that the scene that contains the placement is realistic and
that the viewer can find a point of reference with his or her own life. This is possible only when
the film reflects viewers‘ life experiences. Therefore, reality-based films form a more effective
medium than films that are far removed from reality like those dealing with the future or super
heroes. In-film brand placement is a high-risk model in the sense that placements have to be
thought through right from the script stage. The core idea of the brand and the film has to be
well integrated and then one has to wait for weeks after the film is released or longer to realize
its potential. There is a chance that the brand placement does not create the desired impact and
to prevent such failures marketers should go all out to promote the film and the placement. The
survey suggests that viewers in India still rely on traditional advertising and promotions to learn
about product placements. In fact, viewers indicate that they are motivated to buy the brand if
brand placements are supplemented by articles and features in traditional media that talk about
these placements. Going forward, in-film placement combined with associative marketing will be
a more comprehensive marketing solution than simple brand placement. Micro-targeting is used
by political candidates in election campaigns. This involves using voter demographics, behavior
and attitude insights to develop predictive market segmentation. There is enough evidence to
indicate that micro-targeting viewers could be an effective strategy for brands pursuing in-film
placement strategies. The study shows that demographics have an influence on how brand
placements are viewed by consumers and how these same placements influence consumer
behavior. Micro-targeting consumers through a carefully developed brand placement plan would
be an effective predictive marketing tool. As per the survey, different audience segments display
different attitudinal and behavioral reactions towards brand placements. Marketers should avoid
the one-size-fits-all brand placement strategy and adopt a differentiated approach in order to
32
influence consumer attitude and behavior. The survey shows that male consumers would be
most likely to visit new places and buy fashion brands, technology products and food and
beverage after viewing a brand placement in that product category. It would, therefore, be more
effective if marketers place brands in those categories in movies with male themes such as
action, thrillers and sports. Again, males are more receptive to food and beverage placements
than women, which means that it would be easier to motivate men to buy food and beverage
products through brand placement than women.
Previous literature has suggested that too many brand placements can result in less attention
devoted to each individual placement (Burke and Srull 1988; Kent and Allen 1993; Webb and
Ray 1979) due to clutter (Webb and Ray 1979) and information overload (Malhotra, Jain, and
Lagakos 1982). More product placement in a movie does not necessarily affect the value of a
given placement in a negative way. Marketers may actually benefit from aligning themselves
with a movie with other placements: Given the confirmed importance of selecting the movie for
placement, existing placement agreements can signal suitability and serve as qualifiers
(Karniouchina, Uslay, & Erenburg, 2011).
2.13 Organization for product placement and practical implementation
Many people are involved in determining product placement. Practitioners of brand placement
include clients, advertising agencies, public relations firms, production studio departments, and
independent ―brokers,‖ such as the previously mentioned Mark Burnett Productions (DeLorme
and Reid, 1999). Since mode and prominence of brand placement can vary from the obvious to
the subtle and may be visual, audio, or both, all these elements factor into the cost to marketers.
Understandably, then, when product placement involves payment, fees are typically based on
the amount and type of exposure in a film.
Digital technology permits the use of devices such as personal computers and television for
similar functions. This digital ―convergence‖ also makes it possible to provide consumers with
interactive services. Until quite recently the term ―interactivity‖ was little more than a buzzword.
In the case of television broadcasting, for instance, it simply meant selecting programs or
choosing tele-text pages. Viewers wishing to interact further had to communicate with
broadcasters or advertisers by email, telephone, or letters. Industry observers report this
situation is about to change dramatically with the introduction of enhanced television devices
(e.g., set-top boxes) that allow viewers to interact directly with web-based information.
33
In practical terms, viewers will be able to use their remote controls to purchase goods
associated with the broadcast without having to go online with their personal computer. The
change opens up possibilities for advertisers, not only in traditional spot advertising, but also in
connection with products appearing within regular programming. Putting products directly into a
program or film is referred to as ―product placement‖ or ―brand placement.‖ Product placement
is currently used as a means to help finance movies and TV programs. The combination of
interactivity and product placement could alter the market for product placement considerably.
First, it is likely to enlarge the market substantially and, hence, raise its weight in program
financing. Traditional product placement is limited to branded products, i.e., products already
familiar to the viewer. Interactive product placement (IPP) in contrast is useful in building
brands, because it makes any placed product interactively identifiable and easy to buy.
2.15 Product placement strategy formation
While product placement is a growing industry, the instances of brand-modified products are
increasing. Brand-modified products are those altered for legal purposes, or lack of desired
affiliation to the program or movie by the product corporation.(Linnet, 2004). Legally, program
producers are obligated to manipulate products if they do not have permission to use products.
At times, the product corporations are concerned about being identified or associated with
sensitive issues, messages, or presumed agendas in the movies or television programming.
Considering the history and dimensions of product placement, it can be argued that though
product placement is a booming industry, its success is dependent on viewers‘ individually
conceived feelings regarding products and/or services.
2.16 Efficacy of product placement: Brand recognition and recall
Because of the increase in product placement, there are many studies that have examined the
attitudes towards product placement, the experiences and interpretations of brands post-product
placement, the effects of product placement, and memory of product placement. However, while
product placement is a popular trend, there are occasions when branded products are altered in
movies and little, if any, research has been done on the effects, perceptions, or reactions toward
brand-modified products. The brand modifications are made for various reasons, including
branded product‘s lack of desired affiliation with the message of the media and/or casting a
product in defamatory light.
The results of a survey of 963 unaided recalls and aided recognition of brand-/products are
reported in this study.
34
2.17 Factors affecting recognition and recall of product placement
Research also shows that more men are likely to research a brand and look for a brand that
they have seen in a movie than women, which means that brands would have to supplement
brand placement with special marketing and communication activities directed specifically
toward their female audiences. While men are more receptive to brand placement and likely to
purchase brands if they are shown in use, shown in familiar situations and placed in a positive
light, women are motivated if brands are shown in use, they are new brands and brand
placements are supplemented by news about the brand in other media. Given these facts
brands that are geared toward women have to adopt a very different placement strategy than
those brands marketed to men. Differences are indicated among viewers of different age
groups. Location and fashion brands are the top two placements across all age groups. In
addition, viewers in the age group 36+ years may open to car placements, those that are young
and fall in the age group 21-25 years may open to technology placement and those in the age
group 26-30 years may open to food and beverage placement. For marketers trying to sell high-
end car brands in-film placement is a good strategy even though car placement overall has very
few takers. Also this age group (36+ years) is more likely than other age groups to talk about
the placements with friends, research about the brand and look for the brand, which makes car
placement seem even more effective. Similarly, studies show that technology brand placements
are more popular with students and mid professionals, both of whom adopt and adapt to new
technologies more readily or use technology as a status symbol. Hence, marketers promoting
technology brands need to promote them to these two audience groups while being mindful of
the type of movies that they enjoy, the category of placements that they are receptive to and the
type of character that they can believe in. Mid-level professionals look for technology products
to enhance their status and lifestyle; hence, showing the brand in a positive light by highlighting
its status and value indicators would make the brand more appealing to this group. On the other
hand a younger group looks for the newest and the hottest technology trend; hence, placing a
brand that is new and trendy and showing-off its features would make the brand more appealing
to this group.
35
2.18 Important out come from literature review for this study
Some of the contributions made by the various authors in the literature on media,
communication, entertainment, advertising and product placement and their relevance to this
study are listed in the following pages…
36
Table No. III Literature Review
S. No. Year Title Author Contents Relevance
1 2001 Product Placement
integrated marketing
communication
strategy
Riku
Kaijansinkko
How you can be clever enough to take
the image and value of multimillion
dollar entertainment production and
wrap them around lower products
To correlate Product placement
with IMC and define role of it.
2 2002 Conversions and the
potential banned on
interactive product
placement in
Germany
Cristian Jansen Economic impact of German advertising
regulation . Critical review of relevant
regulation
To critically define product
placement and viewers right to
entertainment from ethical point of
view.
3 2003 An explorative study
of testing the
effectiveness of
product placement
compared to 30sec.
advertisement
Kristin Blonde
and Ireae roozen
Comparing the effectiveness of product
placement with the effectiveness of
30sec.Adverisement
To analyze the parameters for
comparing product placement with
traditional advertisement and their
effectiveness in brand recall and
recognition.
4 2005 Content analysis of
product placement
of African American
oriented
programming on
united paramount
Claudial R
Cluophat
Contents analysis of product placement
of African American consumer
To determine Cross culture effect
on product placement acceptance.
37
network
5 2006 Product placement
or poor
entertainment
Kristin E Riccard Based on a subjective judicial
determination of what constitute a
commercial used and an expressive
used
Ethical and legal consideration in
product placement .
6 2006 Restricting the
making of junk food
to children by
product placement
and character selling
Angela J
Cambell
How legislation would contribute to the
reduction of childhood obesity
Effect of product placement on
viewers especially on children.
7 2008 product placement
beyond media
Keelith C will,
Niclas Liinanki
To analyze how the available theories
on product placement can be applied to
situation other than media
To correlate various work done in
the field of media and
entertainment.
8 2008 Effect of advertising
and product
placement on
television audience
Kellith C Willbur Random coefficient logic model of
viewing demand for TV program
including product placement and
advertising
Characteristics of TV viewers and
the role and importance of product
placement as a media strategy.
9 2008 The proliferation of
product placement
as a mean of
advertising
communication
Marry P
Saladino
Examines the growth of rebirth of
product placement and various models
of product placement and explains why
it is ethically problematic in regard to
protecting consumers
To analyze the historical
development of product placement.
38
10 2009 The science behind
scientific learning
product placement
recommendation
Oakland CA It comprises reading intervention
software product that are proven to
build the cognitive , linguistic and
literacy foundation for becoming a
skilled leader
To recognize various technology
that works for product placement
strategy.
11 2009 Product placement
and effect of
persuasion
knowledge
Stephen Fitch Effect of persuasion knowledge and
cognitive buyers’ attitude towards a
brand embedded in a movie
To analyze attitude of viewers
towards product placement.
12 2009 Virtual product
placement , examine
the role of
involvement and
presence in second
life
P Arisa
Mahyare, Jubdy
Drinnme,
Kerriann
Effect of individual involvement with
second life on their experience with
product placement
To define virtual product
placement.
13 2010 The influence of
product placement
prominence of
consumer attitude
and intention
Ben Kozary,
Stacey Baxter
Developed a theoretical framework
explaining the impact of “Subtle and
prominent” product placement with
respect to brand awareness and
attitude of consumer
Proposed model to analyze the
attitude and intension of viewers.
14 2010 Acceptance of
product placement
of unethical products
Jasper Van
Ravestijn
Influence of variance , Jerne, modality
and paid or branded product placement
on the acceptance of product
placement on unethical product
Different attitude of viewers
towards product placement of
unethical products and ethically
charged product.
39
15 Dec.
2003
Audience
characteristics and
product placement
effects
Scott Jane And
Craig-Lees
Margaret
Examines recall and its relationship with
placement quality, product
category/brand familiarity and recall
Also examines the relationship
between product category/brand
familiarity and program involvement in
the context of PPL.
the relevance and importance of
audience characteristics such as
product category / brand familiarity,
emotional and cognitive
involvement and star liking on
recall is necessary for effective
product placement management
16 1997 Consumers
perception of ethics
and acceptability of
product placement in
movies
Pola B. Gupta
and S Stephen
J. Gould
Assesses attitude and feeling towards
productplacement.
Acceptability of product placement
among viewers of ethically charged
product.
17 Product placement
effectiveness:
revisited and
renewed
Williams
Kaylene
Petrosky Alfred
Hernandez
Edward
Page Robert
Product placement effectiveness, Ethics
have been discussed with different
angles.
to examine product placement in
terms of definition, use, purposes
of product placement, specific
media vehicles, variables that
impact the effectiveness of product
placement, the downside of using
product placement, and the
ethics of product placement.
18 April,
2009
Product placement
and the effects of
Stephen Fitch A controlled laboratory experiment
reveals that when viewers watch the
This study examines the effect of
persuasion knowledge and
40
Persuasion
knowledge
movie in a natural setting, viewers with
persuasion knowledge exhibit lower
attitude toward
the placed brand than viewers without
persuasion knowledge. However, such
backlash brand damaging effects are
absent, if not reversed, when viewers
watch the movie in a cognitively busy
setting.
cognitive busyness on attitude
toward a brand embedded in a
popular movie. Product placement
is playing an increasingly
important role in marketing strategy
as conventional techniques have
been rendered ineffective by their
own ubiquity.
19 April
9,
2010
“Enhanced” FCC
Regulation
Of Product
Placement Would
Breach Free Speech
Rights
Lewczak
Joseph And
Digiovanni Anne
The protectionist concern with the
consumer harm that product placement
allegedly causes is
entrenched in an old media perspective
and the notion that deception occurs if
the separation between programming
content and commercial advertising is
not abundantly clear.
the creativity and quality of
entertainment programming may
depend on First Amendment
protection of the product placement
economic model.
20 A Model Of The
Antecedents Of
Brand Attitudes In
Product
Placements: An
Empirical Evaluation
Patwardhan
Hemant and
Siva K.
Balasubramania
n,
their integrative effects on viewer
attitudes to the brand have not been
studied from an empirical
perspective. This paper integrates key
constructs from these categories in a
unified model, examines their relative
strengths
Results validate the role of
meaning transfer in placements.
Key findings reveal the central
position of attitude to product
placement as well as the existence
of skepticism.
Implications for marketers and
41
using a second order confirmatory
factor analysis modeling strategy.
public policy practitioners are
discussed. The paper concludes by
acknowledging some limitations
and observing some interesting
research directions.
21 Assessing The
Value Of Product
Placement
From The
Consumer’s
Perspective
Daugherty Terry
Gangadharbatla
Harsha
Kim Yeo Jung
Logan Kelty
the purpose of this research is to
specifically measure the perceived
value product placement holds in
consumers’ minds and understand how
this impacts general attitudes toward
this tactic.
As a program of study, the
exploration of product placement
and the understanding of how
consumers value this
strategy must continue. The
confirmation of the relationship
between product placement and
consumer perceptions of value,
informativeness and irritation are
important discoveries as they
represent key antecedents of
perceived value.
22 Dece
mber
15,
2002
Convergence And
The Potential Ban
On
Interactive Product
Placement In
Germany
Christian Jansen This paper addresses the economic
impact of German advertising
regulations.
The digital convergence of media
provides a starting point for the
analysis. This
convergence makes technically feasible
product placement is generally
banned in Germany, relevant
regulations are critically reviewed.
Additionally, a simple model is
developed that allows for a welfare
economic approach to the analysis
of an interactive product placement
42
“interactive product placement” (IPP),
the integration of interactively
purchasable products in television
programs and
movies for the purpose of advertising.
ban.
24 May,
2011)
Do Marketing Media
Have Life
Cycles? The Case
Of Product
Placement In Movies
Karniouchina
Ekaterina and
Uslay Can and
Erenburg
Grigori,
This article examines the economic
worth of product placement in movies
over a time span of 40 years (1968–
2007). The authors find an inverted U-
shaped relationship between the year of
the movie release and the
returns associated with product
placements. In addition, a similar
inverted U-shaped relationship
characterizes the economic worth of tie-
in campaigns associated with product
placements.
The results reinforce the notion
that marketers find it increasingly
difficult to get their message across
using traditional media and
underscore the need for the
marketing industry to reinvent itself
when new tactics lose their luster.
The authors conclude with a
discussion of additional empirical
regularities.
25 2006 Audience Response
To Product
Placement
Balasubramania
n Shiva and
Karrh James
and Hemant
Patwardhan
This study comprehensively reviews
literature to develop an interactive
conceptual model.
Hierarchy of effect model based on
cognition affect and conation.
It provides extensive research
agenda of conceptual and
empirical issues.
43
26 2008 The Proliferation Of
Product Placement
As A Means Of
Advertising
Communication
Saladino Mary
P.
This paper examines the growth and
rebirth of product placement, a
technique being practiced in the
communication process of marketing. It
examines various models of product
placement and present some reasons
why it is
ethically problematic in regard to
protecting the consumer.
The purpose of advertising is to
communicate a manufacturer’s or
brand’s message to the consumer
base.
This message includes relaying the
attributes and benefits of the
product and its value to the
consumer via words, symbols,
pictures and sometimes price.
27 June
25,
2008
Effects Of
Advertising And
Product Placement
On Television
Audiences
Wilbur Kenneth
C., Goeree
Michelle S., And
Ridder Geert
The study estimates a random
coefficients logit model of viewing
demand for television programs,
wherein time given to traditional
advertising and product placement
plays a role akin to the “price” of
consuming a program. Data include
audience, advertising, and program
characteristics from more than 10,000
network-hours of prime-time broadcast
television from 2004 to 2007. Research
finds that the median effect of a 10%
rise in traditional advertising time is a
15% reduction in audience size.
Results imply that networks should
give price discounts to those
advertisers whose ads are most
likely to retain viewers’ interest
throughout the commercial break.
Creative strategy and product
category factors are important
determinants of viewer response to
traditional advertising. When we
control for program episode quality,
we find that product placement
time decreases viewer utility.
44
28 2002 Product placement
Effectiveness ;
Cross Cultural
Analysis
Asriel Ciska To develop a proper model moderating
factors to measurement product
placement across cultures.
Modality and culture are the only
significant predictor in implicate
memory measurement.
29 2004 Product Placements
In Movies: An
Australian
Consumer
Perspective On
Their Ethicality And
Acceptability
Brennan Stacey
, Rosenberger
Philip J. And
Hementera
Veronica
This paper replicates prior research and
investigates the attitudes and
perceptions of Australian
moviegoers in respect to the
acceptability of product placement and
audience attitudes towards the
placement of ethically-charged
products, such as alcohol, guns and
cigarettes.
The findings indicate that product,
gender and movie frequency
viewing have an impact on
product-placement acceptability.
Australian consumers find
ethically-charged products to be
less acceptable than neutral
products. Gender comparisons
revealed that males are more
accepting of both ethically-charged
and neutral placements.
Comparisons to the previous
American, Austrian and French
findings showed a similar pattern of
individual influences on product-
placement perceptions
30 2008 Product Placement
In The United
States:
A Revolution In
Lee Sandra Regulation of product placements is
effectively left to the FCC.
The United States lawmakers have
been largely ignoring the changes
that these new advertising
strategies have brought on public
45
Need Of Regulation programming. These changes bear
significant consequences for
consumers and producers alike.
Not only does the average viewer
have the right to know when he is
being subjected to an
advertisement.
31 2003 Product Placement
As Communication
Tools
Berglund Niklas
and Spets Erik
Product placement is inexpensive in
comparison with traditional
advertisement.
To understand the role of product
placement in public relation.