Product Placement

Diploma Thesis from the year 2003 in the subject Business economics - Marketing, Corporate Communication, CRM, Market Research, Social Media, grade: 1,0, Berlin School of Economics and Law (European Business), language: English, abstract: Inhaltsangabe:Abstract:§Product placement has become increasingly common in recent years. This paper analyses the practice of placing brands in films and television programmes from different perspectives.§From the marketers point of view the development of product placement as a marketing communication instrument is analysed. It is also shown how filmmakers can use it to add realism to a film and save production costs. Putting the product placement strategy into practice is found to be a complex process. Furthermore, the way of compensation varies from case to case. The analysis of costs per thousand reveals that product placement is a cost-effective marketing communication instrument. This analysis of the marketers and the filmmakers point of view is supported by interviews with marketing departments, product placement agencies and film production companies.§On the other hand viewers ethical concerns about product placement are investigated and it is studied how they are included in legal restrictions. The outcome is that there are some areas with no regulations and areas with rules that have limitations. Therefore, recommendations for improvement are made. Also, ways are established how marketers can take viewers concerns into consideration when placing their brand in a film.§Finally the effectiveness of product placement in marketing communications is analysed on the basis of academic research. It is found that product placement can be successful in regard to brand recall and recognition and to some extent in regard to brand attitude and purchasing behaviour. However, the effectiveness depends on the type and exposure time of the placement, the kind of film and supporting advertising.§Summing up, product placement can be used effectively for marketers and filmmakers, while not having predominantly negative effects on viewers. However, this is only the case when it is planned carefully and a number of aspects are taken into consideration.§Inhaltsverzeichnis:Table of Contents:§INTRODUCTION4§AIMS AND OBJECTIVES4§METHODOLOGY5§PART 1:BACKGROUND7§1.1DEFINITION OF THE TERM PRODUCT PLACEMENT7§1.2THE HISTORY OF PRODUCT PLACEMENT9§1.3REASONS FOR THE INCREASING USE OF PRODUCT PLACEMENT10§1.3.1REASONS FOR MARKETERS10§1.3.2REASONS FOR FILMMAKERS10§1.4USE OF PRODUCT PLACEMENT TODAY AND FUTURE FORECAST11§1.4.1MARKETS11§1.4.2CATEGORIES12§1.4.3NEW POSSIBILITIES AND FUTURE FORECAST12§PART 2:MARKETERS' AND FILMMAKERS' VIEW: PLANNING AND IMPLEMENTATION13§2.1PLANNING13§2.1.1DEVELOPING PRODUCT PLACEMENT AS AN EFFECTIVE COMMUNICATION INSTRUMENT USING KOTLER'S 8 STEPS14§2.1.1.1Target audience14§2.1.1.2Communication objectives15§2.1.1.3Communication message15§2.1.1.4Communication channels16§2.1.1.5Communication budget16§2.1.1.6Communication mix16§2.1.1.7Communication results16§2.1.1.8Integrated marketing communication process17§2.1.1.9Problems with the development of product placement as marketing communication instrument17§2.1.2DEVELOPING PRODUCT PLACEMENT AS EFFECTIVE TOOL IN FILM PRODUCTION19§2.1.2.1Opportunities when using product placement effectively19§2.1.2.2Problems of using product placement20§2.1.2.3Solutions20§2.2IMPLEMENTATION20§2.2.1PROCEDURE21§2.2.2COMPENSATION21§2.2.2.1Cash21§2.2.2.2Products21§2.2.2.3Promotional tie-in22§2.2.2.4Examples22§2.2.2.5Costs per Thousand23§2.2.3INFLUENCE OF FIRMS24§2.3CONCLUSION26§PART 3:CONSUMERS' VIEW: MORAL ISSUES AND LEGAL SOLUTIONS27§3.1CONSUMERS' ETHI...