Importance of Product Placement - Book Report/Review Example

PRODUCT BASEMENT Product Basement The recent technological advances has led to significant changes in marketing entrepreneurs and companies have overlooked classic forms of advertising and embraced modern forms of advertising that include product placements (Matthes et al. 2011, p. 85). Indeed, the modes of product placement advertising relate to technological advancements that include films, TV programs, radio, movies, games, drama, and novels. In this context, product placement refers to the “conceived insertion of a brand within a movie, broadcast, computer, cable TV programs, blogs, video games, music video/DVD, magazine, books, musicals, internet, and mobile phones without explicit reference to the product” (Soba & Aydin 2013, p. 111). Product placement involves an agreement between two companies where the product owners pay a certain fee to the owners of the modern forms of advertising (Ofcom 2011, p. 1). In addressing product placement in modern advertising, the paper will cover the key themes related to the practice of ‘product placement, which include style, form, effectiveness, and measurability of its impact. Product placement first appeared in a novel in the 19th century and has grown since then (Soba & Aydin 2013, p. 113). The main aim of product placement is to influence the modern technology audience in a planned incorporation of the product in such technologies. Companies seek to increase consumer awareness of the brand and product and strengthen demand through product placement in movies, games, TV programs, and blogs. Indeed, marketers consider this practice as an integrated marketing communication strategy that promotes their products to a large audience subject to media fragmentation (Soba & Aydin 2013, p. 112). Indeed, this practice is fundamental to companies that seek to overcome the demerits of traditional advertising methods, inform, remind, and convince consumers to purchase reference products (Nunlee, Smith & Katz 2012, p. 11). Manufacturing companies establish agreements with media companies where the latter receives specified fees. Nevertheless, manufacturing companies prefer this form of advertising because it is cost-effective. Indeed, more than two thirds of marketers use product placement especially in commercial TV programming. Different countries have distinct laws of regulating product placement where the practice has been in application for many years in UK. Ideally, the placement can be in form of services, products, or both. In UK, a company pays for the inclusion of its products in TV channel and the TV channel shows a special logo to depict the practice (Ofcom 2011, p. 1). In UK, films, TV programs, sports programs, and entertainment shows support product placement where on 28 February 2011, ITV initiated the support for product placement in UK programming (Hackley, Tiwsakul & Hackley 2012, p. 703). Notably, there are two ways of placing a product which includes placing the product physically on set or digitally super-imposing them after filming. However, such placement must align with the character and the script of the film or program. Indeed, all marketers seek film, programs where the cast, plot, and characters enhance the brand’s positioning, and explores the commercial or critical appeal of the product (Sauer 2012, p. 1). Media programs present product placement in a manner that derives positive feelings towards the advertised brand and enables the audience to develop stronger connections with the brand thus justifying the decision to engage in this practice. As such, we have different types of product placement, which include visual placement, verbal placement, and plot/usage placement (PWC 2012, p. 3). In visual placement, the audience can view the product, service, or logo for a short time in a media program while in verbal placement the audience can hear the product, service, or corporation in the media (PWC 2012, p. 3). In plot/usage placement, the audience can see and hear characters on the screen using or handling product or services on placement (PWC 2012, p. 3). Worth noting is that the choice of a movie, film, or TV program to place a product determines the effectiveness of reaching potential target audience (PWC 2012, p. 5). This emanates from the fact that the audience cannot ignore product placement in the mass media. However, we cannot define a unique audience that product placements targets since the differing cognitive styles among individuals determine their susceptibility to placement effects (Matthes et al. 2011, p. 90). As such, we can derive small or moderate recall effects on evaluating product placements where specific traits predict the strength of placemen influence among the audience (Matthes et al. 2011, p. 90). Nevertheless, the practice has significant effects on any individual. For example, the James Bond film, Skyfall 007 features various products that Coke Zero, Sony, Caterpillar, Walther and, Heineken which have diverse effects on the audience of the film (Sauer 2012, p. 1). The audience has the capacity to understand the brand and determine bad product placement where the scene, character, or cast does not correlate with the placed product. Moreover, undue concentration on the brand creates a negative audience perception (Sauer 2012, p. 1). This practice works in a subtle manner and hence the need to get concerned after the publication of the script where the writer lacks commercial interests and focuses on the products as a plot device (Sauer 2012, p. 1). This helps in establishing an effective product placement. Companies use the practice in advertising with the hope of creating product awareness on the moviegoers by allowing the characters to interact with the products. As such, brands seeking to establish a niche audience focus on product placement. Indeed, the practice is now very popular in marketing communication where brands use it to awaken retreating audiences. In this context, bran placements include services, sports, consumer product placements, and entertainment (Ferle & Edwards 2006, p. 65). However, products and services differ when placed in television shows. Indeed, there are significant characteristics that differentiate product and service placements, which include intangibility, inseparability of production and consumption, heterogeneity, and perishability. The manner of placing a product or service in visual placement differentiates the two. Specifically, primary brand placements refers to when the audience can view the brand, product, or company name displayed on an actual product while secondary brand placements occurs when the brand, product, or company name or logo could be seen on a different item other than the actual product (Ferle & Edwards 2006, p. 69-72). In accessing the prominence of brands in product placement, we consider where the brand name is clearly visible, the brand was at the center of the screen, the brand was with other branded products in the same camera shot, and the number of same-branded products that were visible on the screen (Ferle & Edwards 2006, p. 73). Moreover, the relevance of the brand on the screen, the amount of character interaction with the product and the type of character engaged in such interaction also defines the significance of product placement (Ferle & Edwards 2006, p. 73-74). On the other hand, the classification of characters in a film or TV program determines the value of the product placement on such media. In the film industry, we have main characters, supporting characters, experts, celebrities, and others (Ferle & Edwards 2006, p. 74). The type of a character interacting with the product placed on the mass media defines the amount of attention, credibility, and significance that the audience will derive from the product placement. The type of character that used or mentioned the product defines the attention that the placement commands to the audience. In addition, the amount of time that the product features on the screen determines how the audience will understand the product and develop an urge to purchase it (Ferle & Edwards 2006, p. 74). Characters discuss or mention brands or products in different lengths of time. The number of branded products placed on the screen and the manner of referencing specific products defines the impact of the placement (Ferle & Edwards 2006, p. 74). Indeed, the presence of many products or brands on the same media demeans or shares the impact of an individual product or brand on the audience. On the other hand, the manner of referencing individual product or brand determines the capacity of the product to draw the attention of the audience (Ferle & Edwards 2006, p. 74). Indeed, the characters in a movie or TV program can mention the brand name, product category, or use a pronoun to refer to the brand. Consequently, these factors define the effectiveness & measurement of product placement on the media. There is a huge debate on whether product placement is ethical, effective, and influences the consumption of the product (Kuhn, Hume & Love 2010, p. 59). However, in predicting and exploring the overall product placement effectiveness, we can consider the factors discussed above which include the size of product on screen, duration on screen, visibility of the brand on screen, location on screen, audio references to the product, and integration of the brand. Consequently, we can measure the effectiveness of product placement using key elements that include narrative recall, brand recall, perceived fit between brand and program, and brand opinion. By making quantitative and qualitative interviews through questionnaires about a company before and after a product placement and comparing sales revenues before and after the placement will help in measuring the effect of product placement (PWC 2012, p. 8). Various studies establish significant benefits that relate to product placement on the mass media. Such benefits include bringing the product closer to the values and affection of certain characters, which create product awareness to the audience (PWC 2012, p. 5). Additionally, product placement helps the product to reach a large audience within a short time and for a long time. Since moviegoers and other followers of mass media form a captive audience that will effectively pay attention to the product on the screen. For instance, in the film Skyfall, the audience appreciates the subtle way of placing the product in the film and the brand companies appreciates the effectiveness in the product placement (Sauer 2012, p. 1). As such, product placement is winning situation for the brand companies, audience, and the media. Through the interactions and usage, that the characters form with the products, the audience gets an opportunity to learn more about the product attributes (PWC 2012, p. 5). The practice fosters brand perception and enhances brand awareness to the audience. Moreover, the practice derives a better recall and has the capacity to overlook some traditional advertising laws (PWC 2012, p. 5). Indeed, through this practice, cigarette and beer manufacturers can market their products without accruing penalties (PWC 2012, p. 5). The practice helps in offsetting costs as it enables manufacturers to share the advertising costs with celebrities, program producers, and other stakeholders in the media (Soba & Aydin 2013, p. 115). Where one company purchases a space within a program, it limits competition from other companies in the industry by demeaning their presence in the media (Soba & Aydin 2013, p. 115). Indeed, the fewer the brands in a movie or TV program, the greater the effectiveness of the placement since the products gets an exclusive integration into the TV show or film. Companies like Heineken have received much attention in the media by allocating a big budget to the partnership with movie and TV producers with an aim of eliminating competing companies from such partnerships (Sauer 2012, p. 1). This helps them to derive competitive advantage through exclusive integration into TV shows or films. Nevertheless, there are risks associated with product placement that include time of exposure, negative placement, public reaction (PWC 2012, p. 6), lack of control (Soba & Aydin 2013, p. 115), limited appeal, and competition. Moreover, some of these partnerships are very expensive yet they do not derive the projected benefits. As discussed here in, there are different elements of product placement. However, the reality of normalizing a brand by enabling consumers to experience a product in its natural environment is fundamental element of the practice. Indeed, activating the placement of a brand through marketing and social media is the key element to any brand partnership on the media (Sauer 2012, p. 1). The company or brand uses the placement as a platform to increase the cultural relevance of the product in the audience. Moreover, some brands use this platform to dispel other competitors' products (Nunlee, Smith & Katz 2012, p. 20). Since the practice involves the use of characters cum celebrities to endorse a product, product placement manifests co-present endorsement that promotes product sales, increases awareness (Hackley 2013, p. 98), promotes positive attributes of the product, and increases the likelihood of purchases in an effective manner (Nunlee, Smith & Katz 2012, p. 17). There is legal aspect of product placement. Indeed, in UK, Ofcom is the media regulator that bears the responsibility of setting the rules governing product placement (Ofcom 2011, p. 1). Ofcom permitted the paid-for product placement on commercial TV in the UK in February 2011 (Hackley 2013, p. 98). The regulator stipulates how a brand may appear where it cannot be unduly prominent, and it must be editorially justified (Ofcom 2011, p. 1). It also forbids sponsored television programs in the UK to feature the sponsor’s brands. Moreover, in UK, companies cannot place products in news, children, religious, current affairs, and consumer advice programs designed for UK audiences (Ofcom 2011, p. 1). Alcoholic drinks, cigarettes, other tobacco products, gambling products, medicines, weapons, food, and drink that are high in fat, salt, or sugar and baby milk cannot feature in UK programs (Ofcom 2011, p. 1). In UK, broadcasters must show a special logo at the beginning and end of the program as well as between advertising breaks during the program (Ofcom 2011, p. 1). Examples of products placed on mass media and that relate to England include Coke Zero, Sony, Nationwide, Heineken, Caterpillar, Concept2 Rowing, Durex that cooperated with PPTV, Nescafe that partnered with  ITV, and Microsoft’s Kinect Sports game that features in Sky 1 sport (O'Reilly 2012, p. 1). Additionally, Samsung collaborated with X Factor and Channel 4 collaborated with Nokia Lumia (Durrani 2013, p. 1). Works Cited Durrani, A 2013, Product placement on UK TV is not so much a damp squib, more a non-starter, retrieved 4 June 2014, < http://www.campaignlive.co.uk/opinion/1173424/> Ferle, C.L. & Edwards, S.M. 2006, "PRODUCT PLACEMENT", Journal of Advertising, vol. 35, no. 4, pp. 65-86. Hackley, A. & Hackley, C. 2013. “Television Product Placement Strategy in Thailand and the UK.” Asian Journal of Business Research, vol. 3, no. 1. pp. 97-110. Hackley, C. & née Tiwsakul, R., Amy Hackley 2012, "Unpaid product placement: The elephant in the room in UK TV's new paid-for product placement market", International Journal of Advertising, vol. 31, no. 4, pp. 703. Kuhn, K.L., Hume, M. & Love, A. 2010, "Examining the Covert Nature of Product Placement: Implications for Public Policy”, Journal of Promotion Management, vol. 16, no. 1, pp. 59. Matthes, J., Wirth, W., Schemer, C. & Kissling, A. 2011, "I SEE WHAT YOU DON'T SEE: The Role of Individual Differences in Field Dependence-Independence as a Predictor of Product Placement Recall and Brand Liking", Journal of Advertising, vol. 40, no. 4, pp. 85-99. Nunlee, M., Smith, D. & Katz, M.A. 2012, "Negative Product Placement: An Evolving Theory of Product Disparagement and Unfair Competition", Journal of Marketing Development and Competitiveness, vol. 6, no. 2, pp. 11-27. Ofcom 2011, Product placement on TV, retrieved 4 June 2014, O'Reilly, L 2012, Product placement set to take off in 2013, retrieved 4 June 2014, < http://www.marketingweek.co.uk/disciplines/advertising/product-placement-set-to-take-off-in-2013/4000041.article> PWC 2012, Product Placement in Movie Industry, retrieved 4 June 2014, Sauer, A 2012, James Bond Product Placement Exec Assures Fans There's No 007 Uh-Oh in Skyfall, retrieved 4 June 2014, < http://www.brandchannel.com/home/post/2012/11/01/Brandcameo-Skyfall-Belstaff-Product-Placement-QA-110112.aspx> Soba, M. & Aydin, M. 2013, "Product Placement Efficiency in Marketing Communication Strategy,” International Journal of Business and Management, vol. 8, no. 12, pp. 111-116. Read More