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Posted: May 30th, 2021

Impact Of Product Placement As Method Brand Communication Marketing Essay

Introduction:

Product placement is a cooperative effort of advertisers and creators of entertainment products in which trademarked goods are embedded into popular entertainment products in order to encourage their consumption, overriding entertainment and artistic concerns. The Center for Media & Democracy calls it a form of advertisement, without disclosing it to the receiving party. Common practice of broadcasting has been that advertising is inserted within breaks in programming (or vice versa, as some might argue). But today’s audiences are equipped with enough choice and new technological advances that allow them to ignore advertised messages by zapping to other channels or skipping them altogether with the help of digital video recorders. This results in the proliferation of product placement on television, as exposure of commercial products is engrained into the entertainment component of the program, maintaining audience attention. Media reports estimate that advertisers paid more than $300 million to producers and the six networks during the 2003-04 TV season (McCarthy, 2004) and senior executives foresee that in three to four years product placement will be prevalent in 75% of all prime time scripted shows.

One mean of product placement proliferation is unrelated to this technological development, but rather to the central role movies play in the multi-channel offering of digital platforms, as product placement has been a common feature in movies since their inception (Newell & Salmon, 2003). This development mostly means that there is no more a “film industry” divorced from the television industry, which in itself raises questions dealt with further on in this study. But the newer instances of product placement are within made-for-television programs themselves. Be it televised dramas, reality shows, live sport events or children’s programs, product placement, as the numbers tell us cannot be seen as less than promoting a revolutionary change in television economics. As such it is raising ethical, moral and legal questions of a new order, mainly, regarding the border between artistic expression and commercial speech. This study describes the development and recent changes in product placement regulation in the U.S., Europe, Australia, Canada and Israel. It identifies some of the current legal and regulatory processes in these countries and highlights their differing philosophies regarding the relationship between advertising, broadcasting and the public interest standard. The means, by which different regulatory systems have chosen to deal with this issue, are in themselves indicative of both the significant change in broadcasting jurisprudence and of the volatile distinction between art and business.

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Marketing Basics in terms of Product Placement:

Marketing is a detailed and bottomless study of identifying customer needs and wants with the fulfillment of those customer needs & wants in a manner in which the selling organization generates profit. The basic concepts of marketing have been introduced and implemented by manufacturing and service organizations from many years and today these concepts are widely applied in all SME (Small and medium enterprises) as well in large multinational companies. (Shiller, 2005)

For various years, organizations have been using numerous marketing techniques to promote their products and services such as advertising, sales promotion, personal selling, direct marketing etc. The purpose behind these techniques is not just to create awareness about the offering (product/service) but also to communicate brand message and its slogan to the target customers (Lomax, Alyce, 2006).

A brand is a name or an image given to a product or service that is introduced in the market. If a customer opts to buy a branded product and experiences that, it is referred as brand experience and a psychological aspect that makes a customer to buy that particular branded good/service is known as Brand image (Kotler, 2004). An organization selling its products would definitely think about advertising its offering to the target market and plans to manage that brand well in order to sustain in the market in long run. Every single brand that penetrates into the market focuses to gather a good image in sight of its customers and if a brand succeeds to do that then it is referred as Brand recognition in which customers in the market are pretty much aware of the brand name (Gregory, 2003). Furthermore, Brand awareness and Brand salience are two other important areas that highlight the ability of a customer to recognize the brand and its product line by just looking at its symbol or its logo. Successful brands draft such an attractive logo and symbols for their brands that customers instantly identify those brands within a blink of an eye and without even thinking twice (Holt, 2004).

Brand Communication occurs when a consumer encounters with the brand itself either when he/she comes across any advertisement of that particular brand or when he/she walks in a supermarket and finds out variety of products placed on a shelf with a salesperson informing more about the product and the brand (Sullivan, 1992). Brand communication not only interacts with a customer on one time basis but it ensures that every brand meeting with the customer will strengthen the relationship between customer and the brand. Customers nowadays are constantly communicating with the brands through advertising, sponsorships, supermarket shelves, product brochures, and many other purchase materials. Although this communication takes place successfully but the purpose of this communication for a brand remains that a customer not only gets a positive experience with that product/service but also receive a better payback from customer not only in short run but also in long run (Shimp, 2003). The brand communication is just another reflection of the strategy of the brand and if this communication influences the customer then it is for sure that the change in customer’s belief would be in favor of the brand.

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Product placement which is also known as embedded marketing is also one of the most common forms of advertisement and is now recently been brought into excessive use by a lot of organizations (Swift, 2005). Basically in Product placement, branded goods are put into movies, story lines of bulletin news or into news documentary programs but the viewers are not informed about the particular good or service is being featured. It is also heard that product placement has been part of TV and film up till now but this placement of products has yet to be used in to music videos and electronic games. Product placement into different media (TV/Films) has been watched by many analysts as a key tool in brand communication. According to the marketing guru’s, product placement into various Medias follows the concept of IMC (Integrated Marketing Communication) in which mass markets are fragmented in to mini markets due to which there is stronger message consistency and greater sales impact. Furthermore it also forces the upper management to think how customers come and contact the organization (Krane, 2006).

Usage of Product Placement:

Product placement started to take its shape over hundred years ago in nineteenth century mainly in form of publication (books), television and in films. It was in 1920 that articles like Harrison’s reports got published with respect to Red crown gasoline which later on feature in to a comedy movie called The Garage. Since then, a lot of products that were increasingly coming into existence were placed in different medium either in publications or in films. Corona typewriter was the other product that was linked with Harrison’s report, got placed in the movie, The Lost world in year 1925. In 1927, Hershey’s chocolate was put into a movie called Wings that later on won an Oscar award for best picture. These activities of product placement kept on taking place in years to come with more and more products were featured into Hollywood movies. Studebaker motor vehicles were another product placement into Mr. Ed television show (Keller, 1993).

As above mentioned, the strategy of placing products (product placement) started a century ago when products were placed into different media but the motive of using those products wasn’t clear for the viewers watching the movies or going through the publications and movies. Today with the help of brand communication, we get a clear view that a product or a service placed into any media such as a print media or a television series or any movie is not in there just for no good reason but it is there with the purpose and that is to communicate with the viewers so that they get to know the brand message as well as that product or offering appeals the viewers in best way possible.

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Impact of Product Placement through Brand Communication:

With the introduction of product placement in various forms of media, the concept of brand communication gained a lot of pace (Lomax, 2006). Consumers have started having a strong feeling that the product/services being placed are basically not just used by artists in the advertisement but they are actually communicating a lot of message regarding the brand itself to the viewers. By placing products in advertisement and other forms of media, a brand is not only creating awareness but also creating recognition and strong image in the mindset of the viewers (Miller, Muir, 2004).

Another impact of product placement in media on customers is that it creates a product identity and leaves a brand image in the mind of a customer making him/her perceive in mind how actually brand is and offers the product. Nowadays, the product placement through brand communication mainly focuses more towards filling the gap between Brand Identity and Brand Image. Those brands are successful enough to establish themselves and build a connection between the brand personalities as actually perceived by the target audience. With the help of product placement, brands have started considering choosing brand names that conceptually target the products/services that their organization deals in (Klein, 2000).

With an increasingly usage of product placement in terms of brand communication, advertisers have now realized the effectiveness of product placement that they now continue to use it as marketing strategy. Although this concept of product placement has impressed the marketers and advertisers all over the world but there are also few elements that personally feel and object that this practice is not ethical as viewers or customers are not aware of what has been hidden from them in an advertisement appeared either on TV or in any published media. Due to this, one of the group named as Consumer Alert has objected that customers and viewers should have full disclosure of all product placement arrangements criticizing that a lot many product placements are not disclosed fully leading to deceptions. Other consumer groups too have been negative about product placement raising issues that their members are forced to write ad copy disguised as storyline on the grounds that millions of viewers after watching the advertisement go forward to buy the products without having a firm knowledge (McWilliams, 1993).

According to various credible resources, the concept of product placement has been gaining a lot of pace in past few years and in current scenario, product placement has rapidly been part of brand communication is many large multinational organizations. In year 2006, product placement was estimated at $3.08 billion and it is expected that in year 2010 this figure is like to increase up to $5.6 billion (Ries & Trout, 1986).

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Another reason for the growth of product placement has been the increasingly usage of digital video recorders (DVR) which enable viewers to skip advertisements. This behavior of skipping advertisements has increased the frequency of owning the DVR for a longer span of time.

Product Placement in Films & Television:

Many advertisers buy airtime outright on television, usually in 30-second blocks during which they distribute their messages directly to viewers. This is an example of straightforward advertising, where the viewer routinely accepts minor lapses in total adherence to ethical tenets, but this is not the only way that advertisers distribute their messages in video media today.

Another common method used by advertisers in television and films, a far more subtle method called “product placement.” Product placement involves advertisers making payments or giving other non-monetary support to film and television producers, and in return the producers include references to the advertised product in the scenery or costumes used in the performance. Many consumers of video entertainment are entirely unaware that they are viewing an advertiser’s message during the performance itself. The subtlety of the technique is one reason that people who first learn about the technique’s existence view it as unethical. To present an overview of traditional advertising techniques in video media, it is important to contrast the methods with those of product placement. Using specific examples of product placement, it can be investigated how the technique functions in practice and how it uses the core methods of persuasion, including ethos, pathos, logos, visual and psychological persuasion.

Persuasion using logos might be used when a script is altered to verbally mention a product, ethos may be used when respected actors demonstrate the use of certain products onscreen, and the expected pathos of dramatic production can steer viewers to attach certain emotions depicted in the drama to the advertised product itself. An exploration of the psychological and visual methods of persuasion will help to determine the ethicality of product placement.

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Today, with dozens of channels available in each bedroom, the typical video media consumption pattern is by a single person viewing niche programming. Lowered social skills are one side-effect of this trend, but more importantly for our discussion, the absence of immediate peer opinion triples the effects of video media on “social learning”. Further, the effect of product placement is vastly enhanced when social norms are increasingly formed from behavior models seen only in fictional performances. Visual forms of persuasion vary widely in the field of product placement. Some advertisers opt to have their products placed in prominently visible places in the scenery, where the viewer cannot avoid noticing. What is important for the consumers of video media to do now is to assess the impact of product placement on their interaction with entertainment. It’s safe to assume that it is not an accident or coincidence whenever one sees a non-generic product in a TV show or film today. If no company paid for it, then it would be blurred-out. The consumer needs to understand that fictional scenery is no longer positioned and composed solely for artistic effect, and upon learning this, he or she needs to discover where their own feelings lay.

Celebrities & Product Placement:

The intended impact of product placement has increased with the combination of celebrity placement.

Brands and marketers have long used celebrities as spokespersons for their wares, some more successfully than others. Celebrity product placement differs from celebrity endorsement as with the latter; consumers realize they are seeing an advertisement in which the celebrity is compensated. With celebrity product placement, free products are distributed with the expectation that the celebrity will be seen using the product, thus leading to increased sales of the brand. This process of combining a celebrity with a brand becomes an additional impetus for the targeted customer to identify with and purchase the highlighted item. How does this occur and how does this serve as an added endorsement?

Since the celebrity is seen wearing or using the product, it appears to the consumer that this product was the choice of the celebrity. Companies have gone to quite exorbitant lengths to capitalize on this. At the Academy Awards, last year, two gift bags contained products worth over $110,000 each. Products such as Gucci sunglasses, Sprint phones, and Lacroix watches were enclosed (Holiff, 2005).

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Products used in Product Placement:

Since the concept of product placement has been introduced into the scenario, a lot many products have been used product placement. They normally include Automobiles, Consumer Electronics, Food Drink, Travel, Tobacco etc (Wernick, Andrew, 1991).

Automobiles that have been commonly used in product placement include Fords used in X files series, BMW in James Bond, Shelby GT500 in I am legend and Cadillac series in Matrix Reloaded. All the cars have been used as product placement in famous movies of Hollywood.

A lot of consumer goods have been product placed in many famous movies such as Sony electronics used in Casino Royale, plus Apple Mac Books too have been used in various movies plus in video games like metal gear solid 4 (Zhang & Sood, 2002).

Product placement is indeed a supportive tool used in current scenario for communicating the brand value to the viewers/customers. It does not only display a product or service in a commercial/advertisement but also focuses more towards communicating the brand message, brand recognition and also creates a strong image of the brand in mind of the customer.

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Music Videos & Product Placement:

As product placement tactic is widely adopted into Movies, TV series, publications and video games, now this form of advertisement has stepped into the music industry where the products are placed specially into the storylines of the video of song.

For instance, Justin Timberlake’s hit track, what goes around comes around is a perfect example of product placement in which the storyline is different but suddenly sports cars (ford GTO mustang and Ferrari) emerge into the video highlighting the concept of product being placed in the video. The concept of this product placement explains that the car manufacturers like ford and Ferrari are real turbo engine cars that are designed for speeding on tracks and especially for people who love thrills while driving.

The other video which I have selected with reference to product placement is Akon’s track, Sorry Blame it on me in which numerous products have been placed that are directly delivering brand message to the viewers. Firstly there has been a Ranger Rover vehicle in the video delivering the message that Range Rover is not just a 4 wheel drive but represents itself as a family car. Secondly, the other vehicle showed in the video which is Mercedes also delivers its message that it’s a car that is so admired and attracted towards everybody that people might do anything to any extend to get it away. http://www.youtube.com/watch?v=4iBqMD0lSrw

Conclusion:

To sum up the study on product placement and its various ways of communicating brand messages to the target market, it is pretty much clear that this concept has obtained a lot of success in very short span of time and with the same boom it is operating, there are even higher chances that this technique receives rapid success. Organizations through product placement can create a better image in the sight of consumers but also communicate their brand message to the target market in the best possible manner.

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