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?