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The Aspects of Product Placement As a Marketing Tool in the Czech Republic

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The Aspects of Product Placement As a Marketing Tool in the Czech Republic Recent Researches in Applied Mathematics and Economics The aspects of Product Placement as a marketing tool in the Czech Republic JAN KRAMOLIŠ, MARTINA DRÁBKOVÁ Department of Economics, Department of Management and Marketing Tomas Bata University in Zlín nám. T. G. Masaryka 5555, 760 01 Zlín CZECH REPUBLIC [email protected], [email protected] http://www.fame.utb.cz Abstract: - A newly defined type of marketing tool of brand integration known as product placement has been used in the film industry for decades. Until recently, a controversy existed as to whether or not this tool is acceptable in audiovisual works. This was defined by the committee for radio and television broadcasting in the middle of year 2010 and specified by a new legislation in the Czech Republic. Product placement represents a remarkable marketing tool with highly variable use for both experts and companies. Product placement does not suffer from such a high “advertising blindness”. Marketing experts have inconsistent opinions on product placement. Some of them consider it to be a new marketing tool while others perceive it to be a new type of advertisement. This article explains the role of product placement and its historical origin and describes its current situation on the Czech market, including the view of experts from the fields of production, television and the committee for radio and television broadcasting. Key-Words: - Product placement, above the line communications, new types of marketing tools, television advertisement in the Czech Republic, marketing in films, sitcoms and television series. 1 Introduction Czech authors Jana Přikrylová and Hana Marketing communication represents all relevant Jahodová define product placement as the use of a communication with the market. According to real branded product or service usually directly in Vysekalová, “traditional” forms of communication the audiovisual works (films, TV programmes and such as advertising, sales promotion, public series, computer games), in live broadcasting and relations, direct marketing and sponsoring can all be shows or in books which are not promotional in classed as marketing communications. However, a nature, under clear, contractually agreed conditions. series of changes has been made to these traditional For that reason, it is not considered to be a hidden forms due to new specialized branches, techniques advertising, but rather a certain analogy to and media that have emerged and which need to commercial communications or an advertorial and, employ marketing tools even more. One of these therefore, an alternative way of placing an new, forms of promotion is product placement. [15] advertisement for a product or a brand. [14] The US Federal Trade Commission defines Another definition of product placement can be product placement as a form of promotion in which found in a Czech book by Vysekalová and Mikeš. advertisers insert branded products into They describe product placement as a deliberate and programming in exchange for fees or other paid placement of a branded product into audio consideration. [13] visual works with the aim of its promotion. This is Associate Marketing Professor at Panthéon essentially based on working certain contractor’s Sorbonne University JeanMarc Lehu states that the products or services in a film, serial, musical or expression product placement, or brand placement, other plots. [15] essentially describes the location or, more The above definitions by different authors show accurately, the integration of a product or a brand that product placement could be found in various into a film or televised series. It is also possible to audiovisual works. It is probably the most frequent find commercial insertions within other cultural in films (e.g. James Bond); Lehu also mentions the vehicles, such as songs or novels. [7] use of product placement in series and television programmes (Friends, American Idol), novels and ISBN: 978-1-61804-076-3 144 Recent Researches in Applied Mathematics and Economics plays (The Da Vinci Code), song lyrics (Humble by men. "Cigarettes" have lower results in gender neighborhoods by Pink) or branded videogames differences but follow the trend of "alcohol" and (FIFA 06, London Taxi). [7] "weapons". Among the neutral items, only one Product placement can be used either in a statistically significant difference is identified: dominant or in a nondominant shot. In the dominant "healthy products" is more accepted by women. [2] shot, there is a direct shot at a certain product, In the US, product placement was in 2009 a $5 occupying a significant part of a television screen. billion industry, increasing annually. However, in In this way, the product is immediately identifiable Western Europe, a very different regulatory culture by a viewer. However, when there is an indirect shot has prevailed. The main instrument of European at a product in the background and the product itself television regulation has been the „Television occupies a minor part of the screen, we speak about without Frontiers“ Directive, established in 1989 a nondominant shot. In the latter case, the product is and revised in 1997, not least to include new merely a natural part of the shot that does not provisions on advertising, teleshopping and self- disturb. At the same time, the viewer’s perception of promotional channels. In 2007 the European the product is not a condition. [12] Commission unveiled the latest vision, now called Product placement can occur in audiovisual the Audiovisual Media Services Directive works in three different forms: (2007/65/EC). Under the old Television Directive, 1. The product is openly discussed in the works surreptitious advertising was prohibited. Many (there is a verbal reference). states, including Britain, took this to include product 2. The product is being used by one of the placement, but others, notably Austria and Italy, characters in the works (active placement). have allowed advertisers to pay for brands to appeal 3. The product is captured in a shot in a film or a in programs. [13] television show or placed in a virtual What are the effects of product placement? The environment (passive placement). [14] effect of placement on brand memory, with the Lehu considers product placement from a exception of one study only looked at short-term different point of view. He distinguishes four types memory effects. Not enough work has been done of product placement, namely classic placement, relating to effectiveness of placements from an corporate placement, evocative placement and organization's point of view. [5] stealth placement, each of them bearing its potential Contrary to the recommendations of Lindstrom benefits and disadvantages. [9], the results demonstrate the interest of favoring • Classic placement has existed since the prominence over plot connection, which remains, technique was first originated. It is much more however, an important characteristic of brand tactical than strategic, since it is a matter of placements. [8] making a product or a brand appeal in the You won’t be a hero, if you spent all your budget camera’s view. only to ATL advertisement. Main target is to • Corporate placement prioritizes the brand over convert prospective to your customers. [4] the product. In the Kozak´s research output is a new • In the case of evocative placement, the marketing rule: “Find out, what the customers operation is more discreet, in the sense that wants, and then bring it to the market” was newly brand does not appear, nor is it clearly cited onscreen. transformed to “Invite your customers to process of • Stealth placement is highly discreet, almost developing new product, use their enthusiasm and undetectable. Often well integrated into the bring to market a new product outgoing from their scene, its unobtrusive presence owes it a ideas. These customers make word of mouth natural aspect, which may generate a more marketing of this product for free. [3] powerful impact and force of conviction when it is identified. [7] According to Guido, Peluso, Tedeschi and 1.1 Legal aspects of product placement in the Nicole, the research highlights product placement Czech Republic acceptability on a gender basis, especially for some After the years of legal uncertainty, a fundamental products. The results show a statistically significant change in the field of advertisement in film and difference for two of the ethically charged products: television in the Czech Republic came on 1 June "alcohol" and "guns" in movies are more accepted 2010. Film and television producers, television ISBN: 978-1-61804-076-3 145 Recent Researches in Applied Mathematics and Economics broadcasting operators, clients, advertising and producers and television studios. This was done by media agencies lived to see the legalization and, means of guided interview, during which the more importantly, establishment of relatively clear individual main points of the questions were noted rules for product placement. The reason for the in questionnaires and, at the same time, recorded on change mentioned is an application of the directive the voice recorder for the purpose of a subsequent 2007/65 ES, which alters the directive 89/552/EHS transcription of full answers that were entered into (known as “Television without Frontiers”). As for the database of results. the previous practice in Czech cinematography and In the second phase of the research, the results television broadcasting, various specific products or were analyzed using quantification and by means of brands used to appear in audiovisual works and seeking a mutual dependence. Structured interviews discussions were led about whether this depiction contained 12 open questions. The experts were represents a hidden advertising or not. Together divided into several categories with common with the concept of product placement, other features. In total, 24 interviewees from television concepts are often used that are relevant for both organizations and other experts took part in the pricing of product placement and determination of research. The results obtained were subjects to a potential effect on viewers.
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