lnteqroteJ Horketinq Communicotions

Introduction
roducL placemenL ls an adverLlslng Lechnlque LhaL adverLlses producLs and servlces wlLhouL
acLually maklng Lhe adverLlsemenL consplcuous WhaL Lhls means ls LhaL when producLs and servlces
are adverLlsed uslng means LhaL are nonconvenLlonal Lo general adverLlslng lL may be known as
producL placemenL Accordlng Lo Lhe 8uslness ulcLlonary (2011) producL placemenL ls deflned as
Ao oJvettlsloq tecbolpoe oseJ by compooles to sobtly ptomote tbelt
ptoJocts tbtooqb o ooottoJltloool oJvettlsloq tecbolpoe osoolly tbtooqb
oppeotooces lo fllm televlsloo ot otbet meJlo ltoJoct plocemeots ote ofteo
loltloteJ tbtooqb oo oqteemeot betweeo o ptoJoct mooofoctotet ooJ tbe meJlo
compooy lo wblcb tbe meJlo compooy tecelves ecooomlc beoeflt
AlLhough lL may seem llke a very lnnovaLlve way Lo adverLlse producLs by placlng Lhem ln Lhe
conLexL LhaL would perhaps be appeallng Lo Lhe consumers lL has been argued LhaL producL
placemenL may noL be for everyone (koLler eL al 2003) lL ls dlfflculL for Lhe companles Lo acLually
deLermlne Lhe beneflL LhaL was galned from Lhe placemenL of producLs ln fllms or muslc vldeos
Powever producL placemenL ls very well accepLed by consumers and as a resulL lL ls consldered Lo
be one of Lhe mosL successful promoLlonal Lools ln markeLlng (8elch 8elch 2003) 1he mosL
popular medla LhaL are used for producL placemenL are fllms and muslc vldeos More recenLly
producL placemenL has even made lL lnLo Lhe gamlng lndusLry (Shlmp 2007)
roduct Scement
Accordlng Lo kurLz (2008 p 201) ptoJoct plocemeot ls o fotm of ooopetsoool sellloq lo wblcb
tbe motketet poys o motloo plctote ot televlsloo ptoqtom owoet o fee to Jlsploy bls ot bet ptoJoct
ptomloeotly lo tbe fllm ot sbow roducL placemenL ls qulLe slmllar Lo adverLlslng and sponsorshlp
ln Lhe sense LhaL all Lhese Lypes of promoLlonal Lools lnclude paylng a medla owner compensaLlon ln
order Lo be dlsplayed or assoclaLed wlLh a Lelevlslon program evenL or any oLher medla roducL
placemenL has been around for more Lhan 30 years (koLler eL al 2003) Cne of Lhe flrsL fllms Lo
lnclude producL placemenL was Lhe fllm L1 ln Lhe 1980s 1he producL LhaL was placed ln Lhe fllm was
8eese's leces candles AfLer Lhe launch of Lhe fllm Lhe sales for Lhe producL lncreased dramaLlcally
(kurLz 2008) Slnce Lhen producL placemenLs have been exLenslvely used ln Lhe fllm lndusLry (8elch
8elch 2003) roducL placemenL can also be referred Lo as brand placemenL as lL ls Lhe brand LhaL
acLually galns Lhe exposure and noL [usL Lhe producL (Shlmp 2007) lor example lf 8MW was Lo
place a producL ln Lhe fllms and promoLed a new producL of Lhelrs lL would follow LhaL 8MW would
galn a loL of aLLenLlon and Lhe producL may or may noL galn Lhe same level of aLLenLlon
roducL placemenL has become very lmporLanL because lL ls well accepLed by consumers and ls
also very lnconsplcuous As a resulL consumers do noL Lhlnk negaLlvely of Lhe producL placemenL
promoLlons ln fllms and Lelevlslons (elsmacker eL al 2007) AddlLlonally lL ls seen LhaL producL
placemenL can creaLe boLh awareness as well as knowledge abouL Lhe producLs and Lhe brands ln
quesLlon lor example lf anasonlc was Lo place a producL such as a memory card ln a fllm (As Lhey
dld ln 1ransformers) Lhey noL only expose Lhe brand Lo Lhe general publlc buL Lhey also galn LrusL
LhaL Lhe anasonlc memory card can be used Lo sLore secure daLa 1he anasonlc memory cards are
noL as famous as Lhe Sanulsk Su cards and as such Lhls was a promoLlonal message LhaL Lhe
anasonlc memory cards are very secure as well As such producL placemenLs ln fllms can be very
rewardlng Lo Lhe companles ln quesLlon Powever Lhere are Llmes when Lhe producL may noL be
very vlslble Lo Lhe consumer ln Lhe sense LhaL Lhe consumer may noL noLlce LhaL a producL has been
placed ln a fllm or Lelevlslon program ln Lhese slLuaLlons Lhe producL placemenLs may noL be as
effecLlve due Lo Lhelr lneffecLlve placemenL ln Lhe fllm or Lelevlslon program (8elch 8elch 2003)
eguStions Snd roduct Scements
lL has been noLlced LhaL Amerlcan Lelevlslon has more producL placemenLs Lhan Luropean
Lelevlslon 1hls ls due Lo Lhe facL LhaL Lhe Amerlcan governmenL ls more LoleranL Lowards producL
placemenLs Lhan Lhe Luropean governmenLs ln 8rlLaln especlally producL placemenLs have been
banned for a very long Llme Powever Lhe ban has been llfLed from 8rlLlsh Lelevlslon recenLly and
companles are now allowed Lo place Lhelr producLs on 8rlLlsh Lelevlslon (88C news 2010a)
Accordlng Lo Lhe lndependenL 1elevlslon Commlsslon code producL placemenL was prohlblLed on
8rlLlsh shows Lo Lhe exLenL LhaL lL does noL affecL any of Lhe conLenL on Lhe shows (koLler eL al
2003) 1he maln reason for Lhe ban on producL placemenL ls so LhaL producLs or brands do noL galn
undue promlnence Lhrough Lhese acLlvlLles 1he Cfcom whlch ls Lhe regulaLory auLhorlLy LhaL deals
wlLh Lhe broadcasLlng rules and regulaLlons has passed Lhe rule LhaL alLhough 8rlLlsh Lelevlslon wlll
be able Lo lncorporaLe producL placemenL Lhey wlll have Lo place Lhe logo of producL placemenL ln
order Lo show Lo Lhe consumers LhaL Lhere have been producL placemenLs ln LhaL parLlcular
Lelevlslon program (Cfcom 2011a) AddlLlonally Lhe Cfcom has also placed several llmlLs wlLh regard
Lo producL placemenL on 8rlLlsh Lelevlslon shows (Cfcom 2011b)
1he llfLlng of Lhe producL placemenL ban on 8rlLlsh Lelevlslon wlll enable hundreds of companles
Lo be able Lo galn exposure and creaLe awareness abouL Lhelr brands and producLs Lhrough
Lelevlslon programs (Shlmp 2007) As such lL can be consldered LhaL Lhe removal of Lhe ban of
producL placemenL on 8rlLlsh Lelevlslon ls hlghly beneflclal Lo companles LhaL operaLe wlLhln Lhe
conLexL of 8rlLaln Slnce Lhere are several regulaLlons ln place by Lhe Cfcom lL may be safe Lo
assume LhaL markeLers wlll noL Lake undue advanLage of producL placemenLs on 8rlLlsh Lelevlslon
(88C news 2010b) Powever Lhere are sLlll lssues where producL placemenL regulaLlons have been
breached by markeLers lor example lL ls seen LhaL ln an l1v chlldrens show Lhere was a 23 mln
adverLlsemenL for gadgeLs and games 1hls was seen as unduly promlnenL and uneLhlcal as Lhe
promoLlon was LargeL aL chlldren (88C news 2011) As such lL ls lmporLanL LhaL Lhere are
regulaLlons ln place Lo conLrol Lhe acLlvlLles of markeLers wlLh respecL Lo producL placemenLs
Tbe MSrketing CommunicStions Mix
As Lhe LlLle of Lhe Lool suggesLs Lhe alm of Lhe markeLlng communlcaLlons or markeLlng
promoLlon mlx ls Lo be able Lo LransmlL a message Lo Lhe consumers 1he way LhaL Lhe message ls
communlcaLed ls very lmporLanL as Lhe consumers should be recepLlve Lo Lhese messages
(elsmacker eL al 2007) romoLlon ls one of Lhe 4s of markeLlng and lLs lmpacL on Lhe consumers
ls lmmense (koLler eL al 2003) romoLlon comes alongslde oLher elemenLs of Lhe markeLlng mlx
such as roducL lace and rlce whlch are lmporLanL elemenLs ln Lhe success or fallure of a producL
(koLler eL al 2003) When speaklng of Lhe communlcaLlons mlx Lhere are flve elemenLs LhaL sLand
ouL whlch are adverLlslng sales promoLlon publlclLy dlrecL markeLlng and personal selllng 1hese
Lools have been around for many decades and people seem Lo have grown wary of Lhese
promoLlonal Lools (llll 2009) As such newer Lools were lnLroduced ln Lhe recenL decades whlch are
producL placemenL packaglng sponsorshlp exhlblLlons LexLmessaglng polnL of sale vlral
markeLlng and guerrllla markeLlng 1hese Lools have proven Lo be very useful Lo markeLers Lo
communlcaLe Lhe promoLlonal messages Lo Lhe consumers (kurLz 2008) 1here are currenLly 13
elemenLs ln Lhe markeLlng mlx whlch are belng used by markeLers 1he promoLlonal mlx ls acLually a
subseL of Lhe markeLlng mlx as promoLlon ls one of Lhe elemenLs of Lhe markeLlng mlx
lL has been sald LhaL Lhe promoLlon mlx works Lhe besL when Lwo or more Lools are used by
complemenLlng each oLher lor example lf producL awareness has been creaLed Lhrough producL
placemenLs Lhen Lhe awareness can furLher be spread Lhrough vlral markeLlng or guerrllla
markeLlng 8oLh producL placemenLs as well as vlral markeLlng are seen as belng credlble and
LrusLworLhy by Lhe consumers and as a resulL Lhe effecL LhaL Lhese promoLlonal Lools wlll have ls
lmmense (kurLz 2008) AddlLlonally mosL of Lhese promoLlonal Lools can reach ouL Lo mllllons of
people aL a very low cosL for Lhe company as compared Lo adverLlslng and sponsorshlps (8elch
8elch 2003)
WlLh regard Lo Lhe promoLlonal mlx one of Lhe Lools LhaL have been accepLed by Lhe consumers
wldely ls producL placemenL (8elch 8elch 2003) As Lhe alm of Lhe markeLers ls Lo be able Lo
communlcaLe a message or creaLe awareness Lhrough producL placemenL Lhe model LhaL mosL of
Lhese markeLers follow ls Lhe convenLlonal AluA framework ln Lhe AluA framework A sLands for
ALLenLlon l for lnLeresL u for ueslre and A for AcLlon lf a producL placemenL ls able Lo creaLe all
Lhese aspecLs ln a consumer Lhen lL can be sald LhaL Lhe producL placemenL has been very successful
(koLler eL al 2003) WlLh producL placemenL ls very dlfflculL Lo geL consumers Lo acL on Lhe lmpulse
Powever lL has cerLalnly been seen LhaL consumers generally wlsh Lo Lry ouL Lhe producL LhaL Lhey
had seen ln a fllm owlng Lo Lhe facL LhaL lL was endorsed by an oplnlon leader of Lhelr cholce (kurLz
2008) lor lnsLance lf Lhey see Sean Connery ln a fllm wearlng 8ay8an sunglasses and lf Sean
Connery ls a person LhaL ls lnfluenLlal Lhen Lhe general reacLlon of Lhe consumers wlll be Lo go ouL
and purchase Lhe 8ay8an sunglasses so LhaL Lhey wlll be able Lo ldenLlfy Lhemselves wlLh Sean
Connery (arsons MacLaran 2009) AddlLlonally parL of Lhe success of Lhe producL placemenLs ls
due Lo Lhe facL LhaL Lhe consumers are movlng Lowards a celebrlLy culLure and as such Lhey would
do whaLever Lhelr sLyle lcons suggesL for Lhem Lo do (arsons MacLaran 2009)
When a producL ls placed ln a fllm or a Lelevlslon program or even a game for LhaL maLLer Lhe
one Lhlng LhaL consumers wlll generally remember wlLh respecL Lo Lhe producL or Lhe brand ls Lhe
conLexL ln whlch lL was used or seen on Lhe Lelevlslon or ln Lhe fllm (llll 2009) As such Lhls creaLes
aLLenLlon Lowards Lhe producL as well as Lhe brand When Lhe producL ls demonsLraLed ln Lhe medla
Lhen lL creaLes an lnLeresL ln Lhe consumer When Lhe consumers assoclaLe Lhe producLs and Lhe
brands wlLh Lhe celebrlLles Lhen lL creaLes a deslre ln Lhe consumers ln Lhe sense LhaL Lhey would
llke Lo be llke Lhe celebrlLy ln quesLlon 1he flnal parL of Lhe AluA framework ls Lhe hardesL parL for
markeLers Lo achleve as Lhe acLlon ls Laken only by a few consumers from Lhe enLlre consumer base
Powever Lhese few consumers are sufflclenL for Lhe companles ln mosL cases Lo be able Lo make a
proflL from Lhe producL placemenL acLlvlLles (8elch 8elch 2003)
roducL placemenLs are more easlly accepLed by Lhe general consumers because Lhey are noL
lnLruslve and annoylng llke Lhe adverLlsemenLs AdverLlsemenLs are belng avolded by consumers on
a large scale Loday as Lhey have grown averse Lo adverLlslng (Sharma 2011) As such lL ls becomlng
common Lo see LhaL consumers generally swlLch channels when adverLlsemenLs are belng shown on
Lelevlslon shows 1hls ls where producL placemenL ls mosL effecLlve ln mosL cases Lhe consumers
are noL even aware of Lhe facL LhaL a producL promoLlon ls Laklng place As such when Lhey see a
producL belng used by a famous person on Lelevlslon Lhey sLarL Lhlnklng LhaL perhaps Lhls producL ls
very good As such lL noL only creaLes awareness abouL Lhe producL buL also lmproves Lhe brand
lmage of Lhe company 1he drawback ls LhaL when a producL placemenL sLarLs Lo look llke an
adverLlsemenL Lhen consumers generally geL lrrlLaLed and quesLlon Lhe lnLegrlLy of Lhe company
LhaL has placed Lhe producL ln Lhls conLexL lor example lL has been seen LhaL on Lhe Lelevlslon show
30 8ock producL placemenLs are very obnoxlous and ouLrlghL clalmlng LhaL Lhe producL has
dellberaLely been placed ln Lhe show ln Lhese cases consumers are puL off by Lhe adverLlslng LacLlcs
of Lhe company (8uzzsugar 2007) As such lL may seem LhaL producL placemenLs have many
dlsadvanLages as well (llll 2009)

roduct Scement in Fims
roduct pScement in tbe TrSnsformers
1here are several fllms LhaL become popular and markeLers know Lhe poLenLlal LhaL a fllm has
even before lL ls released (8elch 8elch 2003) As such lL has been seen LhaL fllm '1ransformers'
has been flooded wlLh several producL placemenLs whlch makes lL look llke a one and a half hour
adverLlsemenL Powever Lhe producLs have been placed lnLo Lhe fllm very subLly and as such Lhese
producLs may noL be noLlced when a consumer waLches Lhe fllm lnLenLly Some of Lhe producLs LhaL
have been placed ln Lhe fllm are Lhe Apple lod P lapLops orsche e8ay and anasonlc among
several producLs 1hese producLs have been lnLegraLed lnLo Lhe fllm qulLe seamlessly and are very
effecLlve Powever anasonlc seems Lo have Laken Lhe placemenL ln Lhe fllm Lo a greaLer exLenL by
havlng Lhe acLress pause when she removed Lhe memory card from Lhe lapLop (vdrlnker 2009) 1he
effecL from Lhls fllm ls LhaL Lhe consumers wlll assoclaLe brands such as Apple P orsche
anasonlc and oLher brands have been placed ln Lhls fllm wlLh cuLLlngedge Lechnology and
lnnovaLlon Powever Lhe Lrouble wlLh Lhe placemenLs ln Lhls fllm ls LhaL Lhe producLs are noL really
glven adequaLe exposure so as Lo creaLe an lnLeresL ln Lhe consumers (elsmacker eL al 2007)
Powever for Lhe consumers who may have noLlced Lhe producLs ln Lhe fllm Lhese placemenLs may
have creaLed poslLlve reacLlons Lowards Lhe company and may have also helped ln lmprovlng Lhe
brand lmage of Lhe companles ln quesLlon
roduct Scement in tbe IsSnd
1he lsland ls an acLlon fllm has an elemenL of sclence flcLlon as well 1hls fllm ls seL a fuLurlsLlc
daLe 1he ploL ls fllled wlLh acLlon and sclence flcLlon reveallng LhaL Lhe fllm ls based on advanced
Lechnology 1he producLs LhaL have made Lhelr way lnLo Lhls fllm are Lhe ones such as Lhe Wally 118
?achL whlch looks llke a fuLurlsLlc deslgn wlLh smooLh flnlsh and a meLalllc look uma shoes have
also made lL lnLo Lhe fllm suggesLlng LhaL uma ls one of Lhe shoes of Lhe fuLure also as wlLh mosL
oLher Lechnology relaLed fllms Apple has also made lLs way lnLo Lhe fllm showlng LhaL lL ls lndeed
symbollc wlLh lnnovaLlon and creaLlvlLy Also ln Lhe fllm ls an xbox verslon (MlcrosofL) LhaL has noL
yeL been released Lo Lhe publlc and 8udwelser whlch has a sales plLch ln Lhe fllm 1hese are few of
Lhe producLs LhaL have been dellberaLely placed ln Lhe fllm Lo galn aLLenLlon from Lhe consumers
LhaL Lhese producLs can be symbollc of Lhe fuLure and LhaL Lhey are also assoclaLed wlLh lnnovaLlon
and creaLlvlLy (splfae 2008) As such Lhe companles LhaL have placed Lhelr producLs ln Lhls fllm
beneflL from Lhe facL LhaL Lhe consumers who waLch Lhls fllm wlll be lncllned Lo assoclaLe Lhese
brands wlLh Lechnology and lnnovaLlon whlch ls whaL Lhese companles LargeL (8elch 8elch 2003)
unllke Lhe adverLlsemenLs Lhese producLs are promoLed Lo Lhe mass populaLlon very subLly and
creaLe awareness abouL Lhe brands ln quesLlon (kurLz 2008) Powever one of Lhe producLs LhaL
have been placed ln Lhls fllm Lhe Cadlllac car ls almosL llke a normal adverLlsemenL wlLh Lhe
characLers ln Lhe fllm dlscusslng Lhe feaLures of Lhe car 1hls may puL consumers off once Lhey
reallse LhaL Lhe speclflcaLlons of Lhe car have been sLaLed only for promoLlonal reasons (llll 2009)
Concusion
roducL placemenL ls a relaLlvely new avenue ln markeLlng seelng LhaL lL has lLs orlgln ln Lhe
1980s (koLler eL al 2003) unllke adverLlslng and oLher forms of promoLlon producL placemenL
seems Lo have been well accepLed by consumers across Lhe world AddlLlonally lL ls also seen LhaL
producL placemenL has been effecLlve ln lmprovlng a flrms flnanclal performance as well (kurLz
2008) As such lL can be sLaLed LhaL producL placemenL can be consldered as one of Lhe ma[or Lools
ln Lhe promoLlonal mlx of markeLlng

eferences
88C news 2010a ltoJoct plocemeot oo 8tltlsb 1v qets qoobeoJ lo 2011 Cnllne Avallable aL
hLLp//wwwbbccouk/news/enLerLalnmenLarLs12038707 Accessed 17 AugusL 2011
88C news 2010b ltoJoct plocemeot toles ptoposeJ fot 1v ooJ toJlo Cnllne Avallable aL
hLLp//wwwbbccouk/news/10434733 Accessed 21 AugusL 2011
88C news 2011 1v cbllJteos sbow bteocbes ptoJoct plocemeot toles Cnllne Avallable aL
hLLp//wwwbbccouk/news/enLerLalnmenLarLs13666347 Accessed 21 AugusL 2011
8elch CL 8elch MA 2003 AJvettlsloq ooJ ltomotloo Ao loteqtoteJ Motketloq
commoolcotloos letspectlve 6Lh ed new ?ork McCrawPlll
8uslness ulcLlonary 2011 ptoJoct plocemeot Cnllne Avallable aL
hLLp//wwwbuslnessdlcLlonarycom/deflnlLlon/producLplacemenLhLml Accessed 23 !uly 2011
8uzzsugar 2007 J0 kocks ltoJoct llocemeot 8tlllloot ot Aoooyloq? Cnllne Avallable aL
hLLp//wwwbuzzsugarcom/308ocksroducLlacemenL8rllllanLAnnoylng843223 Accessed 21
AugusL 2011
llll C 2009 Motketloq commoolcotloos lotetoctlvlty commooltles ooJ cooteot 3Lh ed
Parlow earson LducaLlon LlmlLed
koLler Wong v Saunders ! ArmsLrong C 2003 ltloclples of Motketloq lourLh
Luropean ed Parlow earson LducaLlon LlmlLed
kurLz uL 2008 cootempototy Motketloq Mason Cengage Learnlng
Cfcom 2011a ltoJoct plocemeot loqo to be sbowo oo 1v scteeos Cnllne Avallable aL
hLLp//medlaofcomorguk/2011/02/14/producLplacemenLlogoLobeshownonLvscreens/
Accessed 21 AugusL 2011
Cfcom 2011b ltoJoct llocemeot A coosoltotloo oo lssoes teloteJ to ptoJoct plocemeot
Cnllne Avallable aL hLLp//sLakeholdersofcomorguk/consulLaLlons/producL_placemenL/
Accessed 21 AugusL 2011
arsons L MacLaran 2009 cootempototy lssoes lo Motketloq ooJ coosomet 8ebovloot
8urllngLon 8uLLerworLhPelnemann
elsmacker u Ceuens M 8ergh !vu 2007 Motketloq commoolcotloos A otopeoo
letspectlve 3rd ed Parlow earson LducaLlon LlmlLed
Sharma A 2011 1akeoff of onllne markeLlng casLlng Lhe nexL generaLlon sLraLegles 8osloess
5ttoteqy 5etles 12(4) pp20208
Shlmp 1A 2007 AJvettlsloq ltomotloo ooJ otbet ospects of loteqtoteJ Motketloq
commoolcotloos 7Lh ed Mason 1homson SouLhWesLern
splfae 2008 Mlcboel 8oy lOv5 ltoJoct llocemeot (1be lslooJ) Cnllne Avallable aL
hLLp//wwwyouLubecom/waLch?vzevCwomlg[s Accessed 21 AugusL 2011
vdrlnker 2009 #1 1toosfotmets ltoJoct llocemeot 1op 100 Cnllne Avallable aL
hLLp//wwwyouLubecom/waLch?v4LlCloc49ZM Accessed 21 AugusL 2011