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In: Operations Management

Product Placement Businesses are always looking for ways to expose markets to their products.  One very interesting...

Product Placement

Businesses are always looking for ways to expose markets to their products.  One very interesting method of doing this is product placement.  Instead of running traditional commercials during TV shows, companies and TV/film producers will strategically place a company's products in a TV show, movie, or any number of other contexts that will be viewed by large audiences.   Many companies have even been using product placement in video games.

One of the earlier examples of product placement comes from a personal childhood favorite, ET (1982).  In the movie, a human character uses Reese's Pieces to lure ET from his hiding place.  What many people don't know, however, was that the filmmakers originally wanted to use M&Ms.  They approached Mars, Inc., maker of M&Ms, about a deal to tie in their product with the movie, but Mars passed.  The filmmakers then approached Hershey Foods Corp. with the offer to tie in their product (Reese's Pieces).  The movie turned out to be a hit, and sales of Reese's Pieces shot up.  

Your assignment is to look around for examples of product placement, and then report back here with what you find.  You won't have to look very hard, just pay close attention during your favorite TV shows or movies.  Whenever you see a brand name, you've found product placement.  Keep a pen and paper nearby to record the instances you see and how effective you think they are.  Then, answer the following questions:

  1. Give me at least three examples of placement that you've seen and comment on each of them. (was it used effectively, was the product shown in a positive light, etc.?)
  2. What advantages does product placement have over other forms of promotion?  What disadvantages might it have?
  3. Do you think product placement is effective in driving consumer demand?  Have you ever bought anything because you saw it in a movie or TV show?

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