PRODUCT PLACEMENT

Product Placement in Movies

Product Placement in Movies

Introduction

The topic of product placement is interesting for two reasons. First of all, product placement has become an issue of great interest. For marketers and advertisers, this marketing method is very intriguing. The placement of products in movies is not only effective for marketers but also for filmmakers. However, there is a lack of research on the effectiveness of this technique. The second important factor is the recent shift in the behavior of customers. Brand name and identity have now become more important for customers than before.

In order to respond to changes in consumer behavior, marketers have started to look for unique ways to introduce and market their brands. There are diverse trends that have increased the importance of product placement. There has been a hasty increase in the audience of cinema. This trend has been observed throughout the world. It has largely influenced the use of product placement as a marketing tool (Dunnett & Hoek, 1996). In order to capitalize on this golden opportunity provided by the cinema, marketers and manufacturers have started to utilize movies as a marketing tool. Product placement is an example of the utilization of this medium.

Commercialism has now become an essential part of all types of mass media. According to marketers and producers, the best way to introduce a product to the audience is to place it in the hands of movie stars. To get benefits from this opportunity, marketers place their products in the hands of actors who are viewed by the viewers as ideals. According to marketers and filmmakers, consumers often prefer the products used by people they idealize. Marketers and advertisers believe that movie stars have an implausible capability to influence the behavior of consumer. The act of placing products in movies is very intriguing for marketers. Marketers believe that by placing their products in movies, they can reach a larger and more appropriate audience. The topic of product placement in movies is also very interesting for the scholars of mass communication. For filmmakers in Hollywood and marketers, in the United States, the act of product placement in movies is a familiar perception. Nevertheless, this practice is still considered as a developing marketing practice in other film industries.

Thesis Statement

Product placement is a win-win situation for both movie makers and marketers.

History of Product Placement

Laws and Regulations that Have Been Placed on Product Placement

In the United States, product placement in movies is regulated by a different set of rules. In the beginning, product placement was very rare in Hollywood. This phenomenon was not very common until 1970s. After 1970s, producer began to realize that product placement in movies can save their marketing cost. However, producers did not realize the significance of product placement in movies until 1982. In the 1950s, Federal Communications Commission enacted the payola laws. The Federal Communications Commission ordered all television producers to reveal their sponsors. FCC's sponsorships disclosure rules exempted the cable programs, syndication programs, and motion ...