Page 479 - Foundations of Marketing

446 Part 6 | Promotion Decisions

to give debate-goers free pizza for life if they asked the candidates whether they preferred sausage
or pepperoni pizza. The organization subsequently faced massive criticism from consumers for
attempting to get the candidates to diverge from more serious issues. Pizza Hut dropped the planned
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marketing campaign and asked consumers to discuss the question on the Internet instead.
viral marketing A strategy Viral marketing is a strategy to get consumers to share a marketer’s message, often through
to get consumers to share a e-mail or online video such as YouTube, in a way that spreads dramatically and quickly. When
marketer’s message, often the comedy website Funny or Die released a video featuring New England Patriot Tom Brady
through e-mail or online videos,
in a way that spreads dramati- in a comedic three-minute video, the video doubled as an advertisement for the apparel maker
cally and quickly Under Armour. The video features an Under Armour store as well as its logo and products. The
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video was a viral marketing success and was even featured on CBS-Sports.com and ESPN.
product placement The
strategic location of products Word of mouth, no matter how it is transmitted, is not effective in all product categories. It
or product promotions within seems to be most effective for new-to-market and more expensive products. Despite the obvi-
entertainment media content ous benefits of positive word of mouth, marketers must also recognize the potential dangers
to reach the product’s target of negative word of mouth. This is particularly important in dealing with online platforms
market that can reach more people and encourage consumers to “gang up” on a company or product.

LO 7 . Understand product PRODUCT PLACEMENT
placement promotions.

A growing technique for reaching consumers is the selective placement of products within the
context of television programs viewed by the target market. Product placement is a form of
advertising that strategically locates products or product promotions within entertainment media
to reach the product’s target markets. Apple is considered to
be an expert at product placement. It has had its iPods, iPads,
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and computers featured in several hit movies in recent years.
Such product placement has become more important due to
the increasing fragmentation of television viewers who have
ever-expanding viewing options and technology that can
screen advertisements (e.g., digital video recorders such as
TiVo). Researchers have found that 60 to 80 percent of digi-
tal video recorder users skip over the commercials when they
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replay programming.
In-program product placements have been successful in
reaching consumers as they are being entertained. Because the
X Factor is sponsored by Pepsi, the brand is often featured in
the show. Pepsi logos can be seen throughout the show, includ-
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ing on the cups from which the judges are drinking. Reality
programming in particular has been a natural fit for product
placements, because of the close interchange between the par-
ticipants and the product (e.g., Sears and Extreme Makeover
Home Edition; Levi’s, Burger King, Marquis Jet, and Dove
and The Apprentice; Coca-Cola and American Idol ). On the
other hand, not all companies are happy with the way their
products are placed. Abercrombie offered to pay the popular
MTV show Jersey Shore to stop having the show’s undesirable
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characters wear the company’s apparel during the show.
Product placement is not limited to U.S. television shows.
Itar-Tass Photos/Newscom placement, albeit only during certain types of programs and
The European Parliament green-lighted limited use of product
only if consumers were informed at the beginning of the seg-
ment that companies had paid to have their products displayed.
In general, the notion of product placement has not been favor-
in the United Kingdom. However, new legislation has legal-
Product Placement in the Movies ably viewed in Europe and has been particularly controversial
Gap used product placement in The Social Network. ized product placement in U.K. television programs.
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