Product Placement An Effective Marketing Strategy Mike Myers

Product Placement: An Effective Marketing Strategy Mike Myers in Wayne’s World (1992) Brendan Cahill Prof. Rachlin American Political Culture and the Media 5/9/11

What is Product Placement? • Product placement is the “inclusion of consumer brand name products, packages, signs, logos or other trademark merchandise, services, a verbal mentioning or an advertisement of the product within a motion picture, television show, music video, commercial, video/computer game, book or theatre play” (Kaijansinkko 21). • Studies have shown it is possible to build loyalty and engage customers for a longer period with produce placement than traditional TV advertising (Robinson et al).

What Marketers look for in their Placements • Verification of brand appearances • Audience exposure • Brand recognition • Positive feeling • Purchase Interest Harold and Kumar go to White Castle (2004)

Types of Placement Visual Placements – Visual placements refer to products in the background and foreground of the show. Appearances on screen and the number of appearances on screen. – The most prevalent placement type on broadcast television was ‘foreground, ’ which accounted for 30% of all product placements on broadcast television in 2008 (Saini 78). Auditory Placements • Auditory placements take place when a brand name is mentioned in the dialogue of the program • Includes emphasis on the brand name used Reese’s Pieces in E. T. The Extra-Terrestrial (1982)

Types of Placement • Plot Connection – Refers to the relationship the receiver creates with the characters and the plot of the show. – Effective when the brand makes a significant contribution to the story, causing memory to be formed around the product (Russell 308). • Characteristics of Plot Connection – Connectedness – “the feelings the audience feels before, during, and after exposure to the entertainment and the actors” (Scott 42). – Brand engagement – the degree of attention towards the product – Immersion – being consumed by the plot and the receiver imagines themselves interacting in the envisioned environment. “Fuller! Go easy on the Pepsi!” , Home Alone (1990)

Compared to Traditional Advertising • Product placement offers a less obvious message structure, where the receiver may not know they’re reading an advertised message (K. L. Kuhn et al. 60). • Product placement tends to an aggravated audience that prefers the messages they’re receiving aren’t blatant. • Two marketing strategies have been used… Dunkin Donuts in Tommy Boy (1995)

Overt vs. Covert Marketing Overt Covert • The consumers are aware and conscious they are being marketed towards and the message is easily distinguishable. • Usually involves strong plot connection because the audience realizes quickly what product is being used. • Where there no direct signal is given to the audience to queue they are being advertised towards. • Allows the audience to either pick up the information or simply look over it (K. L. Kuhn et al. 62). – – Press releases Advertising campaigns Trade displays New product launches

“Star Liking” • The likeability of the star, and how the audience interacts and relates to the star, roots the engagement with the entertainment centered on the star (Scott 42). • The level of “star liking” can increase connectedness of the audience depending on – The audiences infatuation – Ability for the audience to relate to the situation Adam Sandler and Subway in “Happy Gilmore” (1996)

Statistics • In 2008 – The top 10 programs accounted for over 21, 000 occurrences of product placement, with American Idol on FOX with 4, 636 occurrences (Saini 78). – Broadcast television placements grew by almost 12%, while placements on cable television declined by 20% (78). – “Wardrobe” placements were the most common on cable television, accounting for 28% of all placements on cable (78). • FCC estimates between 1999 and 2004, the amount of money spent on TV product placement increased an average of 21. 5% per year, and in 2005 enjoyed a 48. 7% increase (Skall).

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Works Cited • • Kaijansinkko, Riku. "ODUCT PLACEMENT IN INTEGRATED MARKETING COMMUNICATIONS STRATEGY. " doria. fi. LAPPEENRANTA UNIVERSITY OF TECHNOLOGY, 27 Apr. 2003. Web. 8 May 2011. <www. doria. fi/bitstream/handle/10024/35143/nbnfi-fe 20031411. pdf? sequence=1>. Kuhn, K. L. , Hume, M. , & Love, A. (2010). Examining the Covert Nature of Product Placement: Implications for Public Policy. Journal of Promotion Management, 16(1/2), 59 -79. Retrieved February 20, 2011, from the EBSCOhost database. Robinson, N. , Hutchison, J. , Clay, L. , & Connolly, D. (2011, Will product placement greatly increase the effectiveness of marketing on TV? Marketing, , 20. Retrieved from http: //search. proquest. com/docview/850493626? accountid=37705. Russell, C. A. (2002). Investigating the Effectiveness of Product Placements in Television Shows: The Role of Modality and Plot Connection Congruence on Brand Memory and Attitude. Journal of Consumer Research, 29(3), 306 -318. Retrieved March 11, 2011, from the Academic Search Premier database. Saini, A. N. (2008). U. S. Television Product Placements Declined by 15% in the First Half of 2008. Journal of Promotion Management, 14(1/2), 77 -83. Retrieved March 11, 2011, from the Academic Search Premier database Scott, J. , & Craig-Lees, M. (2010). Audience Engagement and its Effects on Product Placement Recognition. Journal of Promotion Management, 16(1/2), 39 -58. Retrieved February 20, 2011, from the EBSCOhost database. Skall, Gregg. "Product Placement: The New Advertising by Gregg Skall | FCC Uncensored | All. Access. com. " Radio Industry News, New Music, Music Promotion, Radio Station Song Charts | All. Access. com. N. p. , n. d. Web. 8 May 2011. <http: //www. allaccess. com/fcc-uncensored/archive/292 -product-placement-the-new-advertising>.