What’s Product Positioning?

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Product placement is an advertising technique where companies pay a fee or provide services in exchange for a prominent display of their products in films, concerts, and other venues. It is controversial, but effective in boosting sales and brand recognition. Examples include Pepsi in a chase scene, Federal Express trucks, and Reese’s Pieces in ET.

Imagine this scene in a movie: the hero is drinking a bottle of soda while the villains drive by disguised as delivery men. The hero jumps into his sports car and a chase ensues. The villains eventually crash their pickup truck into a coffee shop and surrender to the hero.

There’s a reason the hero was drinking Pepsi, the villains were driving a Federal Express truck, and the scene of the crash was a Starbucks coffee shop. This reason is called product placement and is more widespread than one might suspect. This is an advertising technique where companies pay a fee or provide services in exchange for a prominent display of their products. It is mostly used in connection with the film industry, although other venues such as concert halls, convention centers and high-profile nightclubs may also agree to some form of placement.

An infamous example of product placement occurred in Steven Spielberg’s film ET. The alien creature was originally supposed to be lured out of hiding by following a trail of M&M chocolate candies. The company that makes M&Ms, however, didn’t want its product associated with an unproven and potentially unmarketable film. A rival company agreed to supply a similar candy called Reese’s Pieces. The film became a huge financial success, and the product placement greatly increased the sales of Reese’s Pieces.

The use of this practice in films has proved controversial. Some filmmakers consider it too commercial. Others, especially those with severe budget restrictions, welcome any company looking to invest money in exchange for placement.

Debate often focuses on the need for a particular branded product in a scene. In our hypothetical chase sequence, the use of a Federal Express truck establishes cover for the bad guy. Placing a fleet of Federal Express trucks on the road, however, may be an obvious case of product placement and considered too commercially motivated.

Despite the debate between artistic integrity and practical commercialism, there is little doubt that product placement is effective in most cases. Viewers may not even be aware of all the product placement examples in an average Hollywood film, but they may remember enough details to boost sales after the fact. If nothing else, the business benefits from the use of its brand or logo in connection with an exotic locale or exciting action sequence. If James Bond rolls out a Coca-Cola display, for example, audiences will remember that sequence long after the film is over.




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