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

increased sales of Reese’s Pieces by 70% 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 Z3 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?