“Can You Hear Me Now?”

News: Proliferation of product placement

Die another day Buy another day?

• Ford paid $35 million to bounce BMW as the film’s car sponsor

• 1995’s Goldeneye’s cost of $50 million was paid for by 50% by product placement

• Companies may pay up to $100 million in promotional support beyond what they paid to have it placed in the movie

• Bond as a global icon shaves with a Norelco Spectra, in the light of Schonbek Crystal Chandeliers, while Halle Barry wears Revlon makeup

• There are cameos of other products: Finlandia Vodka; Omega watches; Versace, Brioni, & gucci clothing; LaPerla bikinis; Tatteossian cufflinks, Philips electronics; Tiffany diamonds; Bollinger champagne; etc…

Live and let buy— (and you thought spam was bad…)

Product Placement News

Why the shift?

• Trends predict an increase of 60% (59 million) of TV households will have some sort of personal video recorder (PVR) such as TIVO, DVR, and Replay that eliminate the 75% of commercials

• Movies, TV shows, and hot TV movies that position products have exceptionally high market rate

• 97% of children have products and toys based on TV or movie characters

• Advertising and entertainment is beginning to merge with all types of entertainment (even news stations)

• Diverse audiences need to be accessed by multiple channels– product placement everywhere!

The Persuasion Process

A means of convincing people:

to buy a certain productto believe something or act in a certain way

to agree with a point of view

What’s the Difference? Persuasion involves arguing for a particular point of view.▪ Persuasion involves trying to

change someone’s thoughts, feelings, and/or behaviors.

Informing is the delivery of information without purpose

Persuasion is ethically neutral (it is ‘amoral’). Knowledge of

persuasion can be used as a defense.

The source’s motives source’s motives are considered when making judgments of ‘morality’.

A 30 second spot for SuperBowl XLIII costs between 2.5 and 3.4 million per 30 sec spot.

Product placements in movies and TV amounted to $3.5 billion in 2011.

Between 15-30 products are inserted in every half hour of television programming”.

Featured Brands: Apple, Bell, Cadillac, Chock Full O’Nuts, Chrysler, Cisco, Ford, Ford Mustang, Hill-Rom, HP, Lacoste, Listerine, Los Angeles Dodgers, Mercedes, Motorola, Pepsi, Philips, Pontiac, Pyrotect, Rolls Royce, San Francisco Giants, Sharp, The North Face, The Riviera Hotel and Casino, Timberland, Toyota, United States Parachute Association

Featured brands: Apple, Belstaff, BMW, Citibank, Datascope, Ford, Ford Mustang, Hamilton, Honda, Hummer, JVC, Kleenex, Loews, Magnavox, McDonald's, MetLife, Mobil, Nautilus, NBC, Nissan, Panasonic, Ronzoni, Salvatore Ferragamo, Sbarro, Spam, Staples, Tic Tac, Time, Verizon, Viking, XM Satellite Radio

The town of Clarke, Texas renamed itself Dish, Texas in exchange for 10 years of free satellite TV

GoldenPalace.com paid $25,000 for William Shatner’s kidney stone and $28,000 for a grilled cheese sandwich with an image of the Virgin Mary.

Anti-war persuasion: Getting naked for peace

Learning about persuasion assists someone in becoming a more effective persuader Important dimension of

communication competence You’ve been engaging in

persuasion your whole life… doesn’t mean you’ve been doing it as well as you can.

Learning about persuasion increases someone’s understanding of how persuasion works, or “what makes it tick.” Overcoming habitual

persuasion: Individuals are often unaware of their own habitual, reflexive patterns of persuasion.

Learning about persuasion makes one a more savvy, discerning consumer of persuasive messages One is less likely to succumb

to telemarketers, infomercials, mail-order scams, and high pressure sales tactics.

Study of persuasion can expose strategies, tactics, unethical approaches

Persuasion Strategies:“Foot-in-the-Door” &“Door-in-the-Face”

FITD: First request accepted, then target request• Start with small favor• Responder identifies with first condition & more likely to respond to second• self-oriented appeal and performance incentives kill FITD• Longer lasting

DITF: First request refused, then target request• Start with large favor to be rejected• Second favor small, likely to compromise & be polite• Delay and self-oriented appeal kills DITF• Easier to do

Foot in the door…

First make a small request, then when granted, make a larger (more desirable) request

• works best with prosocial/altruistic requests

• works best if no extra incentives are offered

• 10% improvement over simple request, 20% if no incentive

• works by cognitive dissonance & self esteem

Door in the face…

Make a large request, then when it is refused, make a smaller (more desired) request

• more effective if prosocial/altruistic (do it for everybody) than selfish

• should be no delay between requests

• slight delay produces 10% improvement, no delay 20%

• works by reciprocal concessions

The The Persuasion Persuasion PitchPitch

Attention Getting• Ad, promo, announcement• physical, emotional, cognitive attention-getters

Confidence Building (credibility & trust)• expertise (authority figures)• sincerity (smiles, gestures)• benevolence (brand names, associations)

Desire (need for change or product)• praise the product (quality, efficiency, etc.)• promise audience benefits (needs)

Urgency (act quickly)• elicit emotional response to rush without thinking• deadlines, emergencies, sales

Action (desired behavior)• trigger words (“vote,” “buy.” etc.)• devices: coupons, contests, sweepstakes, 800 #

6 Human behaviors important to persuasion

▪ Reciprocation▪ Consistency▪ Social validation▪ Liking▪ Authority▪ Scarcity

How can this help marketers?

All societies subscribe to a norm that obligates individuals to repay in kind what they have received. Get a gift, you owe a gift…. Doesn’t have to be a physical gift

▪ Concessions also count as gifts.

Consistency Most people have a

strong the desire to be, and to appear, consistent.▪ If they make a

commitment… they will always try to follow through.

▪ The trick is getting the commitment.

Social Validation If many individuals

have decided in favor of a particular idea, we are more likely to follow, because we perceive the idea to be more correct, more valid.

Liking People prefer to say yes to

those they can relate well to. ▪ A Tupperware party begins

somewhere in the world every two seconds.

▪ We all deny this is so…. But

Authority We are trained from

childhood to respect authority..▪ And to recognize it..

Scarcity Items and opportunities

become more desirable to us as they become less available

All societies subscribe to a norm that obligates individuals to repay in kind what they have received.

The Dark Side The value should be real, and unless overt (“gift for a

meeting”), the impact breaks down if the recipient believes they are only getting the gift to obligate them..

People who express commitment to an action are much more likely to follow through with an action Restaurant no show/no call rate went

from 30% to 10% with the simple addition of a commitment to the reservation process.

The Dark Side Organizations are people too

and nobody likes change

1 man staring at the sky – about 4% will do likewise

5 people looking at the sky This goes up to 18%.

15 people looking up at the sky led to 40% of passerby’s stopping – within 1 minute!!

If many individuals have decided in favor of a particular idea, we are more likely to follow, because we perceive the idea to be more correct, more valid. Demonstrating (or merely implying) that others just like you are

already using the products. Ads depict crowds rushing to stores to acquire the advertised

item. Customer References Case Studies Market Leadership claims

The Dark Side Be careful here, social validation can inadvertently backfire:

▪ “75% of businesses do not protect their email systems”▪ “90% of organizations do not have effective backup procedures in

place”▪ “Most organizational firewalls are incorrectly configured”

The inadvertent message is that if that many people are doing it – it must be OK!!

People prefer to say yes to those they like & can relate to. People in ads

▪ 0.7 waist to hips ratio / body and facial symmetry / youth relative to group.

Sales Training▪ Grooming / Appearance▪ Use of compliments / similarity

Sales tools▪ Use the “big bad system” to protect the sales people…

especially when it comes to discounts and allowances.▪ Allow Sales people to be heroes with key accounts

The Dark Side Match the image to the target customer, - not only

dress and type, but also actions and emotions. Don’t get too real

Authority: We are trained from childhood to respect authority… Establish authority

▪ “Babies are our business, our only business”

Quote authority…Adopt the trappings of authority▪ “Four out of five doctors recommend”▪ 3rd party views / opinions

Embed authority imagery in advertising, but it must fit the target group

The Dark Side People do not like being fooled… and we live in the

internet world… your claims can be checked and phony authority will backfire.

Items and opportunities become more desirable to us as they become less available

The Dark Side The boy who cried wolf syndrome… or…It’s a limited

time offer… let the time expire. The value of Blogs is a concern!

Reciprocity All societies subscribe to a norm that obligates individuals to

repay in kind what they have received. Consistency

Most people have a strong the desire to be, and to appear, consistent.

Social Validation If many individuals have decided in favor of a particular idea,

we are more likely to follow, because we perceive the idea to be more correct, more valid.

Liking People prefer to say yes to those they like.

Authority We are trained from childhood to respect authority..

Scarcity Items and opportunities become more desirable to us as they

become less available

SloganRepetitionBandwagonTestimonial Emotional AppealExpert Opinion

Purpose?

A catchy phrase or statement often used to sell a service or a product

HEAD ON Apply directly

to the forehead

HEAD ON Apply directly

to the forehead

HEAD ON Apply directly

to the forehead

A statement suggesting that everyone is using a specific product, so you should too

A well-known person supports a product or service

A person is made to have strong feelings about a situation

A person is made to have strong feelings about a situation or product

Experts approve this product, so you should use it

“Four out of five dentists recommend sugarless gum for their patients who chew gum”

SloganRepetitionBandwagonTestimonial Emotional AppealExpert Opinion

Using the Internet, magazines, or other sources and research and find two (2) ads using a form of persuasion.1) Identify the target audience2) Identify the persuasion

technique being used.3) Identify the purpose of the

ad.a) Using MS PowerPoint, paste the

ad or staple it to your report.b) List your findings.

• Slogan• Repetition• Bandwagon• Testimonial • Emotional

Appeal• Expert

Opinion

Advertisers know how to target their audiences use appropriate persuasive technique

Audience?

Audience?

Purpose?

Persuasive

technique?

Audience?

Purpose?

Persuasive

technique?

Audience?

Audience?

Purpose?

Audience?

Purpose?

Audience?

Persuasive

technique?

Purpose?

Audience?

Persuasive

technique?

Are U Ready!

Advertisers spend about $200 billion a year on just TV advertising alone.

The average cost for 2013 Super Bowl ad was $2.6 million per 30 second spot.

In 2013, the average American watches about 24,000 TV commercials a year.

www.adage.com & http://television-commercial.net/

What is your favorite jingle? What slogan for a product do you

find yourself saying or singing?What TV commercial has

influenced you to make a purchase? Reflection Question: Since famous

celebrities shop at WalMart, does that mean we should too?

“Persuasion is all around you”

In addition to TV commercials, where else do you see persuasion all around you? Is that persuasion influencing you or your family in any way? Explain.