Johanna Buess

Product Placement: The Analysis of a Marketing Communication Instrument Johanna Buess

Diplomarbeit, die am 10.05.2003 erfolgreich an einer Fachhochschule für Wirtschaft in Deutschland im Fachbereich European Business eingereicht wurde. 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