Product Placement Marketing Agenda Warmup Sales Process Questions

Product 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 • 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 Z 3 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 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 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?