Archive for August, 2013

Product placement is when a “real brand or product is included in a media vehicle (i.e., program, film, video game) in exchange for goods, services and/or money. When placing a labeled product into a movie or TV episode, the idea is to promote that brand while it may be setting in the background. Other times, Product placement can be a little less subtle. This may include the idea that the characters are talking about the product within the script. When the brand is merged with the programming, it may appear practical to the viewer and can eventually lead to “a positive impression of the brand in the minds of the audience.

Reasons to Use

Product placement is the perfect way to get the audience to stare at strategically placed products every time they turn on the TV. Blockbuster movies are perfect for product placement because they can reach an international audience while in theaters and on DVD. Propaganda Global Entertainment Marketing co-founder Ruben Igeilko-Herrlich not only helps place pro

Movie-product-placement.jpgducts in movies but says, “…If it’s an obvious product placement it looks like a commercial that will turn viewers off” (Grover 2009).

Looking on the bright side, a couple thousand-dollar price tag may be a little harsh for smaller business that cannot afford that type of investment. However, “for small companies on tight budgets, product placement may offer better value than purchasing traditional TV spots” (Johnson 2009). Not only does putting recognizable products in movies allow for more publicity, but it’s also not uncommon for sales to increase. “Eileen Sheilds, a New York designer whose shoes were worn by actress Cynthia Nixon in the film ‘Sex and the City,’ which led to more stores ordering her footwear, which is priced from $495 to $595” (Johnson 2009). Along with new customers, including Saks: Dubai, Shields had mentions in fashion magazines and blogs worldwide.



A major problem advertisers face is the ability to fast-forward through advertisements, especially with advancements like TiVo and Comcast’s DVR. Being able to skip these ads that people have made careers around makes is difficult to sell products. By putting products directly into the programming, whether it is a video game, webisode, cell phone application or music video, even the most technologically-savvy person cannot escape the brand names.
Product placement does have its limits, no one watching TV wants to have a product pitched to them through dialogue. “The underlying premise is that increasing exposure from a low to moderate level provides greater opportunity to elaborate on the content of the message, thus facilitating retention in memory. At higher levels of exposure, however, the message recipient becomes fully habituated to the stimulus and boredom/irritation and satiation tend to result in message reactance, increased counterarguing and viewer wear-out” (Homer 2009). According to Tony Pace, Subway’s chief marketing officer, this message is a more “hey, this is paid for” approach (Lowry 2009) rather than a here, listen to the characters, maybe they’ll help sell the product. Product placement has also seen to be more effective when the brand is featured with a character that possesses desirable traits (Homer 2009).



The PQ Media marketing research firm estimated that “$1.88 billion was spent on TV, $1.25 billion on movies and $325 million on other media” (Lane 2008). Companies that are strapped for cash need to make the most of their product placement. “Sponsors typically pay $50,000 or more to get their products showcased in music videos” (Grover 2009). As for other forms of product placement, in 2005 Dairy Queen was promoted on “The Apprentice” reality show, and the cast members were required to design a campaign for the Blizzard. “Dairy Queen spent in the ‘low seven figures’ to appear on the show and run its supporting promotion.” Costs can run from “less than $10,000 to several hundred thousand dollars” (Cebrzynski 2006).
Not all product placements are paid for, though, some happen through promotions and movie producers place products for free or in exchange for promotional tie-ins. “PQ Media estimated that global unpaid product placements were valued at about $6 billion in 2005 and were expected to reach $7.45 billion in 2006” (Cebrzynski 2006).
Although product placement is no stranger to movies and TV, recently they have been spotted in songs, Broadway shows and video games (Lane 2008). Currently, about 57 percent of people play video games today, and over half, at 56 percent, are men (Bulik 2009). Video game makers are putting more effort into video game product placement because statistics show that over 122 million men and women are using and playing them (Bulik 2009). The idea that video games are really a niche market allows for advertisers to target a certain audience within the game. Interpret is a market researcher that breaks down gamers into different segments that are grouped by game preferences such as casual, racing, educational and rocker-esque games. While the makers of video games are increasingly intertwining product placement into video games, the market has risen from “$34 million in 2004 to an estimated $562 million in 2009” (Lane 2008). Jeep, Puma and Motorola are just a few of the marketers weaving its products into this different market. “The latest category of video game advertising is the ‘advergames’ where a video game is created solely to promote a product” (Lane 2008).



The qualities of having brand name products in the background not only promote the brand, but then the characters are seen as having a relationship with the movie itself. “When you see a character reach for a box of Cheerios, drink a Coors or drive a new Jaguar, it’s no coincidence” (Altstiel 2006). Product placement ensures that people see products, even if they are fast-forwarding through the commercials.

At a high-end hotels such as the Luxor hotel-casino in Las Vegas, the Borgata Hotel Casino & Spa in Atlantic City, N.J. and the Seminole Hard Rock Hotel & Casino in Tampa and Hollywood, Fla., will all be experiencing product placement by Sony. Sony is allowing guests at these hotels to “sample products like a PlayStation 3, HDTVs and music from the Sony BGM division” (Beirne 2007). Not only is this product placement unlikely, but also guests can view the products and even buy them at a 10 to 20 percent discount.



Product placement has no specific scheduling but it reaches all people that watch TV – they just might not know it. “House M.d.,” a FOX hit TV drama where Dr. Gregory House is a brilliant doctor who is known for prescribing himself drugs as well as the patients he sees, some drugs that may even kill them. When watching, some may think a pharmaceutical company endorses the show because of the frequent use of the drug Lupron. “House contains no paid pharmaceutical product placement, and they actually try to avoid mentioning specific brand names whenever possible because of potential legal issues” (Donahue 2008).

Not all brands have to be top of the line. ABC Head of wardrobe Cate Adair is “always on the lookout for fresh fashion accessories to adorn her cast” (Johnson 2009). Product placement is in everything … from the bag being carried to the stores they are walking by. The product placement and advertising industry spends millions of dollars to make characters and scenes the way they do. People think they can avoid the ads with TiVo, when really they are watching tons of brand names and they don’t even know it.

Additional Examples



What is Ambush Marketing?

When embracing ambush marketing a brand attempts to attach itself to an event without paying official sponsorship rights. Certain requirements must be adhered to (usually the avoidance of using specific terms and slogans in marketing), but if executed correctly the practice is entirely legal. However, ambush marketing poses certain ethical and moral questions which could potentially have a negative effect on a company or brand’s image/reputation.

Bavaria Beer’s ambush at the 2010 FIFA World Cup

On June 14 2010, Bavaria Beer was accused of initiating an ambush during the FIFA World Cup soccer match between Denmark and the brand’s home country of the Netherlands. Mid-way through the game, 36 female members of the crowd were ejected by FIFA security (FIFA is the governing body of world soccer), with the FIFA citing “a clear ambush marketing activity by a Dutch brewery company”. The crowd members were all models, dressed in identical orange dresses which were part of a gift pack offered by Bavaria Beer. Although the company had made efforts to ensure that the dresses were recognized in association with the beer (Sylvia van der Vaart, wife of the prominent Dutch soccer star Rafael, was approached to model the dress to raise brand awareness) the ambush itself was likely to be low-key until the ensuing controversy elevated the stunt to an issue reported worldwide across all media platforms. FIFA was criticized for its handling of the situation, going so far as to arrest two of the participants for their role in orchestrating the ambush. Many felt that the punishment was too severe, but FIFA insisted with some justification that it was going to necessary lengths possible to protect the interests of its official sponsors.

Ironically, the heavy-handedness of the actions taken by FIFA has probably guaranteed the brand far more exposure than if they had allowed the ambush to continue unpunished. As far as organizing bodies are concerned, this highlights the importance of judging the
appropriateness of a response. Successful ambushes are by their very nature difficult to defend against, so there must be a high degree of consideration regarding how the media and general public will respond to the defense.

This was not the first time Bavaria Beer ambushed the FIFA World Cup. In June 2006, the brand gave out free branded orange lederhosen to around 1,000 Dutch fans to wear at a game between the Netherlands and Ivory Coast. The fans were not allowed into the stadium wearing the lederhosen, and instead were forced to watch in their underwear. The fact that ambushes have occurred at consecutive events heightens anticipation about what the brand might do next time (in 2014, when the World Cup is to be held in Brazil). This kind of elevated interest/anticipation in a brands’ activities give it a stronger platform to generate added exposure (and possibly sales), which only serves to highlight the attraction of embracing ambush marketing.

When marketing their products firms need to create a successful mix of:

  • the right product
  • sold at the right price
  • in the right place
  • using the most suitable promotion.

To create the right marketing mix, businesses have to meet the following conditions:

  • The product has to have the right features – for example, it must look good and work well.
  • The price must be right. Consumer will need to buy in large numbers to produce a healthy profit.
  • The goods must be in the right place at the right time. Making sure that the goods arrive when and where they are wanted is an important operation.
  • The target group needs to be made aware of the existence and availability of the product through promotion. Successful promotion helps a firm to spread costs over a larger output.

For example, a company like Kellogg’s is constantly developing new breakfast cereals – the product element is the new product itself, getting the price right involves examining customer perceptions and rival products as well as costs of manufacture, promotion involves engaging in a range of promotional activities e.g. competitions, product tasting etc, and place involves using the best possible channels of distribution such as leading supermarket chains.The product is the central point on which marketing energy must focus. Finding out how to make the product, setting up the production line, providing the finance and manufacturing the product are not the responsibility of the marketing function. However, it is concerned with what the product means to the customer. Marketing therefore plays a key role in determining such aspects as:

  • the appearance of the product – in line with the requirements of the market
  • the function of the product – products must address the needs of customers as identified through market research.

The product range and how it is used is a function of the marketing mix. The range may be broadened or a brand may be extended for tactical reasons, such as matching competition or catering for seasonal fluctuations. Alternatively, a product may be repositioned to make it more acceptable for a new group of consumers as part of a long-term plan.


The price

Of all the aspects of the marketing mix, price is the one, which creates sales revenue – all the others are costs. The price of an item is clearly an important determinant of the value of sales made. In theory, price is really determined by the discovery of what customers perceive is the value of the item on sale. Researching consumers’ opinions about pricing is important as it indicates how they value what they are looking for as well as what they want to pay. An organisation’s pricing policy will vary according to time and circumstances. Crudely speaking, the value of water in the Lake District will be considerably different from the value of water in the desert.

The place

Although figures vary widely from product to product, roughly a fifth of the cost of a product goes on getting it to the customer. ‘Place’ is concerned with various methods of transporting and storing goods, and then making them available for the customer. Getting the right product to the right place at the right time involves the distribution system. The choice of distribution method will depend on a variety of circumstances. It will be more convenient for some manufacturers to sell to wholesalers who then sell to retailers, while others will prefer to sell directly to retailers or customers.

The promotion

Promotion is the business of communicating with customers. It will provide information that will assist them in making a decision to purchase a product or service. The razzmatazz, pace and creativity of some promotional activities are almost alien to normal business activities.
The cost associated with promotion or advertising goods and services often represents a sizeable proportion of the overall cost of producing an item. However, successful promotion increases sales so that advertising and other costs are spread over a larger output. Though increased promotional activity is often a sign of a response to a problem such as competitive activity, it enables an organisation to develop and build up a succession of messages and can be extremely cost-effective.

The marketing mix of Manchester United

What are the main elements of the marketing mix of Manchester United? First of all the product includes providing an excellent football team that plays and wins in an exciting way. However, there are other ingredients of the product including merchandising such as the sale of shirts, and a range of memorabilia. The product also relates to television rights, and Manchester United’s own television channel. In one respect the place is Old Trafford where home games are played, but Manchester United also plays at a range of other venues. And, of course its products are sold across the globe, through the club’s website and a range of other sales media. 
Manchester United markets itself as a global brand. The club also engages in a range of joint promotional activities, for example with the mobile phone company Vodafone. Manchester United books, shirts, programmes, keyrings and many other items are sold and promoted through its website. The club has positioned itself at the upmarket premier end of the market and, as a result, it tends to charge premium prices as evidenced by the high cost of a season ticket to watch home league games.
Positioning or repositioning a product – refers to locating that product within a market for example presenting it is an upmarket or downmarket product. Positioning it as a product for younger consumers or older consumers etc.


As the say pictures are worth a thousand proven by this guy Hugh,looking for a room to let can be a daunting task so he has to market himself the best way he can and so he does on craiglist.He gets a ten out of ten for his creative use of the white board and a few words.


main-qimg-9dab7362da406daf4332235e62aefab0main-qimg-11500f16ed30a6ed9077b4350be5149dmain-qimg-a7246902d4545712a00f7ad6554fb85c   main-qimg-5cf0c57404534bef2f679a182a80f267 main-qimg-b450f42445f7fa4b18d6956a7a8f438c main-qimg-523cf669870e0c3b224ca46d717fb1bc main-qimg-8c7c0f8a3a74a16c876ca343e9d75db1 main-qimg-cac0e6dccdc8df2e342e963ee83b1efd main-qimg-27b55f4265e6e3bce6b0095ce82ce0ef main-qimg-4ed8d0c527390040338a1a411c16f8d5 main-qimg-6e4b2eadbc824d9b14878478cdb4096f main-qimg-69eb4a748e01ba4430d41eb643534a4a

Marketing is not all about making your products or business friendly to the market at times its all about scaring and daring the market to go against the norm and do something different as we see from the newly opened magnum pleasure store in Australia.

Here is the story as recently reported by inside retail.

In the midst of a soft retail environment, one store is persuading customers to queue for up to 20 minutes and pay a 220 per cent plus premium for an item that (fundamentally) you could pick up in a supermarket.

I guess it depends which side of the retail counter you’re on. The Magnum Pleasure Store is a pop up concept exclusive to Westfield Sydney for six weeks only.Perfectly sane people have happily lined up, handed over $7, and endlessly filmed and photographed the process on their smartphones. It’s executed with the skill and polish of a major FMCG brand, and the intuition of a merchant.

For the uninitiated, this is how the procedure works. Take a ‘naked’ Magnum and choose a chocolate coating – white, milk, or dark. Select up to four toppings, including ‘specials’ such as crumbled meringue and  experimental like rose petals. Wait for it to be drizzled with chocolate by a Magnum ‘bar-ista’ and finished off with a chocolate Magnum coin. Finally, shoot the result on the iPad provided, and share with your friends on social media. Yes folks, customers are willing participants in both the theater and the promotion of the store.

With such a concept Magnum store checks off all four mega trends influencing retail, and they are.

1. Globalization 
The Magnum Pleasure Store is popping up for limited engagements in major cities across the world, including Paris, Milan, Amsterdam, Shanghai, Toronto, and New York. This is a worldwide phenomenon in a border less age.

2. Polarization 
Retail has polarized into extreme value offers at one end of the spectrum and luxury or specialty at the other. The Magnum Pleasure Store successfully turns an everyday (albeit already premium) item into a super premium must have.

3. Digitization 

This is a store that has been digitally driven at every possible opportunity. Its arrival was breathlessly anticipated on social media (including YouTube clips of other cities opening their stores), and its fame is spread further on Facebook, Instagram, and Twitter.

4. Personalization 
Today, retail is all about ‘me-tail’. A big part of the appeal of the offer is that customers can create their very own Magnum concoctions.

As much as it is on-trend, the Magnum Pleasure Store also adheres to a very old rule in retail & marketing: the principle of scarcity.

The store is in one place for a strictly limited run and that heightens its appeal. It screams “get in before it’s gone”.

It also allows the customer to watch the factory in action (and in fact direct the production line), and that is incredibly engaging.

So what you think is this pure Madness or genius?Image

You wouldn’t mention business without marketing from blue chip companies to the guy on the street hawking with no business degree nor a lifetimes worth of business experience.

So what is this marketing.

To put it simple marketing is the process of communicating the value of a product or service to customers.

From that we can see its a process that all those that run a business are ever doing as they are ever serving customers and talking to would be customers.

On a more complex level we can say that

Marketing is traditionally the means by which an organization communicates to, connects with, and engages its target audience to convey the value of and ultimately sell its products and services.  However, since the emergence of digital media, in particular social media and technology innovations, it has increasingly become more about companies building deeper, more meaningful and lasting relationships with the people that they want to buy their products and services. The ever-increasingly fragmented world of media complicates marketers’ ability connect and, at the same, time presents incredible opportunity to forge new territory.

As which marketing includes the coordination of four elements called the 4 P’s of marketing:

(1) Identification, selection and development of a product.

(2) Determination of its price,

(3) Selection of a distribution channel to reach the customer’s place, and

(4) Development and implementation of a promotional strategy.

As from the above definitions we can see that marketing is a business process is a way of life for all business,to conclude:

”If the circus is coming to town and you paint a sign saying “Circus Coming to the Fairground Sunday”, that’s called advertising.

If you put the sign on the back of an elephant and walk it into town, that’s called promotion.

If the elephant walks through the mayor’s flower bed, that’s called publicity.

And if you get the mayor to laugh about it, that’s called public relations.

If the town’s citizens go the circus, you show them the many entertainment booths, explain how much fun they’ll have spending money at the booths, answer their questions and ultimately, they spend a lot at the circus, that’s called sales.

And, if you planned the whole thing, that’s Marketing!”

(source: Unknown)