Hi! Thanks for the question.
Presently, one of the most powerful methods by way companies market
their products through the movies is by way of product placements.
?Product placement is a promotional tactic used by marketers in which
characters in a fictional play, movie, television series, or book use
a real commercial product. Typically either the product and logo is
shown or favourable qualities of the product are mentioned. The
product price is not mentioned nor are any negative features or
comparisons to similar products. Very generally, product placement
involves placing a product in highly visible situations. The most
common form is movie and television placements.?
?Definition of Product placement?
http://www.wordiq.com/definition/Product_placement
The Howstuffworks website provides a good primer on how a marketing
tactic like product placement works and how both parties, the movie
producers and the brand or product benefit from such an arrangement.
In a very simple scenario the exchange of benefits is simple with
products a the means of payment for the advertisements:
?The most common type of deal is a simple exchange of the product for
the placement. Using our existing example, let's say the production
team wants The Architect to display a quirky affinity for a particular
type of beverage. This will come across rather strongly over the
course of the program (because the character even collects the drink's
labels) -- which means the chosen product could get a lot of air time.
It turns out that someone on the crew knows someone who works for
Honest Tea. The movie people approach the Honest Tea folks with a
proposal and a deal is made; in exchange for the airtime, the cast and
crew are provided with an ample supply of various Honest Tea drinks at
work.?
However; since Hollywood is big money then usually big deals are
involved in product placements.
?Imagine that the marketing team at Tag Heuer has heard about this
project and feels that, given the starpower of the actor playing The
Architect, this project would be a great vehicle for showcasing its
product. Someone from Tag Heuer approaches the set dresser with a
financially lucrative proposal. Eventually, they come to an
agreement.?
?Both teams are happy -- the integration of the Tag Heuer product is a
success. Remember, the advertised product's role is to be part of an
ensemble cast rather than the (obvious) star. Tag Heuer manages to
reap the benefits of conventional advertising without being overly
obvious or intrusive to the audience/consumers.?
?How Product Placement Works?
http://money.howstuffworks.com/product-placement.htm/printable
The paper ?Gimme A Bud? by Samuel Turcotte from the University of
Texas at Austin, provides a good glimpse the details on how the
product placement process works and the benefits it provides the major
players.
?There is at least one executive dedicated to product placement at
each of the major studios. Some of the studios refer to this
responsibility as "production resources," while others refer to it
directly as "product placement." Any corporation wishing to have its
products placed in films will generally go through the Production
Resources or Product Placement Department?
?The studio executive's first step is to read and analyze scripts for
upcoming films which are scheduled to go into production. They then do
a breakdown of potential product placement opportunities.?
?Next, the studio executive sets out to find the products and make the
deals. The first call is frequently to the numerous product placement
agencies which represent many of the corporations which have
established an interest in this specialized method of promotion.?
?The lead time on the entire process varies considerably, with some
studios starting as much as three months or more in advance of
production, while others measure the time in weeks.?
?Studio Executives?
http://advertising.utexas.edu/research/papers/Turcotte/studioexec.html
Benefits to Corporations:
- Implied Endorsements by big name stars
- Global Reach
- Low cost advertising compared to other mediums
- Low clutter
- Products are tied to high profile films
- OPTIMUM VIEWING ENVIRONMENT
- CAPTIVE AUDIENCE
?BENEFITS TO CORPORATE AMERICA ?
http://advertising.utexas.edu/research/papers/Turcotte/bencorpamer.html
Benefits to Filmmakers:
- Cost Reduction: http://advertising.utexas.edu/research/papers/Turcotte/costreduc.html
- Additional Revenues:
http://advertising.utexas.edu/research/papers/Turcotte/revenue.html
- Promotions: http://advertising.utexas.edu/research/papers/Turcotte/promotions.html
You can read the entire study in our next link.
?Gimme A Bud?
http://advertising.utexas.edu/research/papers/Turcotte/Toc.html
The additional papers below might be of help to your research.
?Product Placement? by Lance Kinney
://www.google.as/search?q=cache:Ia6ZdxUdWyYJ:comm2.fsu.edu/faculty/comm/Sapolsky/research/ProductPlacement.doc+%22product+placement%22+industry++&hl=en
?Product placement as an international practice: Moral, legal,
regulatory and trade implications? by Amit M. Schejter of Pennsylvania
State University
http://web.si.umich.edu/tprc/papers/2004/304/product%20placement%20tprc.pdf
Another method such as movie product tie-ins is also being used by
filmmakers and marketers.
Movie tie-ins -?a promotional strategy in which a payment is made to a
movie company in return for prominent featuring of a particular
product in a forthcoming feature film.?
?Movie Tie-Ins?
http://en.mimi.hu/marketingweb/movie_tieins.html
Here are the ways it benefit both the brand and the movie studios.
?Licensing deals can be a win-win situation for movie studios and
corporations. For the former, it helps get the word out about your
film in a crowded field. For the latter, it links your product with a
beloved cinematic character, thus helping you move more product.?
?These deals generate more than $7.6 billion a year for film studios
and their partners, according to The Licensing Letter, a trade
publication. Sometimes they ensure that the studios actually make
money on their summer movies after all the cash spent on production
and promotion.?
?Movie marketing push puzzles parents?
http://www.wisinfo.com/postcrescent/news/archive/local_16149063.shtml
Search terms used:
"Product placement" industry process
"Product placement" site:.edu
Movie tie-ins marketing
I hope these links would help you in your research. Before rating this
answer, please ask for a clarification if you have a question or if
you would need further information.
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Regards,
Easterangel-ga
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