Product Placement

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Product Placement

• Marketing

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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

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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
  cant escape it
• No mute button, no fast forward or skipping of
  commercial
• Began in the early 1940s but has greatly
  increased since the late 1980s

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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

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Product Placement 1

• "ET"
• increased sales of Reeses Pieces by 70

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Product Placement Example 2

• "The Firm" increased Red Stripe beer sales 53

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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

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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.

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Product Placement Example 5

• "Days of Thunder" increased sales of Mello Yellow
  to 154 million dollars

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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

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Coca-Cola in Both Films
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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

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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

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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

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Truman Show

• Complete Sales Packet of Notes as you watch
• Will have 2 questions on film at the end to
  answer.

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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?