Product placement is simply when broadcasters are paid money to display products in the middle of shows. The purpose is simply to mesh in the products with what the activities that the characters are doing…
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The move has been approved in recognition of the crisis that the industry is in because of declining ad revenues and to make sure that the British broadcasting networks are not rendered uncompetitive due to unnecessary restrictions. However the government has drawn the line on product exposure in children shows and the exposure of products such as alcohol, tobacco or those food products considered unhealthy.( Campbell Denis ‘TV product placement: Bradshaw bans nasties’)
If we look at product placement through the marketing mix (4 P’s) perspective we can clearly see that this is a form of promotion, something that manufacturers might invest in as an alternative to advertising.
If we analyze the efficacy of product placement using the tools of brand recognition and recall research indicates that brand recall and recognition was significantly improved with product placement activity. However research has generally been contradictory on whether it affects brand attitude change. These findings indicate that product placement could play a beneficial role on new product launches when achieving brand recognition is a key goal.( Kaijansinkko Riku ‘Product Placement in Integrated marketing communications strategy’)
Another interesting analysis of product placement indicates that it maybe more effective then advertising because the consumers are not expecting this kind of stimuli when they are watching television or a film. This ‘Von Restorrf’ effect however maybe affected in the UK by the controversy that product placement has generated which will probably result in consumer’s expecting product placement.( Kaijansinkko Riku ‘Product Placement in Integrated marketing communications strategy’)
This issue is now very pertinent for discussion after have being approved very recently on the 9th of February 2010. Although it was being discussed last year it was still far from being approved (which puts a totally different perspective on things)
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The place in which they reside contributes a major part to their lifestyle. (Segrave, 2004).The people in U.K, U.S and other European countries have a different taste and their outlook on television programs is different. The placement of product also depends on the audience.
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