Product placement in the context of "Rolls-Royce Silver Shadow"

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⭐ Core Definition: Product placement

Product placement, also known as embedded marketing, is a marketing technique where references to specific brands or products are incorporated into another work, such as a film or television program, with specific promotional intent. Much of this is done by loaning products, especially when expensive items, such as vehicles, are involved. In 2021, the agreements between brand owners and films and television programs were worth more than US$20 billion.

While references to brands (real or fictional) may be voluntarily incorporated into works to maintain a feeling of realism or be a subject of commentary, product placement is the deliberate incorporation of references to a brand or product in exchange for compensation. Product placements may range from unobtrusive appearances within an environment, to prominent integration and acknowledgement of the product within the work. When deliberate product placement is not announced to the viewer, it is considered a form of covert advertising.

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Product placement in the context of Film budgeting

Film budgeting refers to the process by which a line producer, unit production manager, or production accountant prepares a budget for a film production. This document, which could be over 130 pages long, is used to secure financing for and lead to pre-production and production of the film. Multiple drafts of the budget may be required to whittle down costs. A budget is typically divided into four sections: above the line (creative talent), below the line (direct production costs), post-production (editing, visual effects, etc.), and other (insurance, completion bond, etc.). For productions distributed by a third party the budget excludes film promotion and marketing, which is the responsibility of the film distributor. Film financing can be acquired from a private investor, sponsor, product placement, film studio, entertainment company, and/or out-of-pocket funds.

When it comes to reporting the budget of a film, the amount of the budget represents the gross budget, which is the grand total of actual spending to produce the project and not to be confused with net budget, which represents the final out of pocket for the producer after government incentives or rebates ("If you pay $50 for something but have a mail-in coupon for a $10 rebate, your gross spending still amounts to $50."). One of the consequences of the Sony hack was the release of budget information of many films or TV shows, including the 2015 Adam Sandler film Pixels. The actual cost to produce Pixels, or the "grand total", was $129.6 million and the net budget for Sony came to $111 million after they received a government rebate in Canada that covered a portion of their gross spend (cost) in the amount of just over $18 million. Even though Sony's out of pocket for the film was reduced because of the incentive, it does not negate the fact that the actual cost (amount spent during production to make the film) was still $129.6 million.

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Product placement in the context of Promotional mix

In marketing, the promotional mix describes a blend of promotional variables chosen by marketers to help a firm reach its goals. It has been identified as a subset of the marketing mix. It is believed that there is an optimal way of allocating budgets for the different elements within the promotional mix to achieve best marketing results, and the challenge for marketers is to find the right mix of them. Activities identified as elements of the promotional mix vary, but typically include the following:

  • Advertising is the paid presentation and promotion of ideas, goods, or services by an identified sponsor in a mass medium. Examples include print ads, radio, television, billboard, direct mail, brochures and catalogs, signs, in-store displays, posters, mobile apps, motion pictures, web pages, banner ads, and emails.
  • Personal selling is the process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation, often in a face-to-face manner or by telephone. Examples include sales presentations, sales meetings, sales training and incentive programs for intermediary salespeople, samples, and telemarketing.
  • Sales Promotion is media and non-media marketing communication used for a predetermined limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions. Corporate giveaway items, sometimes called swag, can be included within product samples and distributed to participants at an event for promotional purposes.
  • Public relations or publicity is information about a firm's products and services indirectly carried by a third party. This includes free publicity as well as paid efforts to stimulate discussion and interest. It can be accomplished by planting a significant news story indirectly in the media, or presenting it favorably through press releases or corporate anniversary parties. Examples include newspaper and magazine articles, TV and radio presentations, charitable contributions, speeches, issue advertising, and seminars. Word of mouth is also a type of publicity, which transform from the person-to-person storytelling to social media influencers, or bloggers promotions today.
  • Direct Marketing is a channel-agnostic form of advertising that allows businesses and nonprofits to communicate directly to the customer, with methods such as mobile messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising.
  • Corporate image campaigns have been considered as part of the promotional mix.
  • Sponsorship of an event, contest or race is a way to generate publicity.
  • Guerrilla marketing tactics are unconventional ways to bring attention to an idea, product or service, such as by using graffiti, sticker bombing, posting flyers, using flash mobs, doing viral marketing campaigns, or other methods using the Internet in unexpected ways.
  • Product placement is paying a movie studio or television show to include a product or service prominently in the movie or show.
  • Digital marketing is the marketing of products or services using digital technologies, mainly on the Internet, but also including mobile phones, display advertising, and any other digital medium.
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Product placement in the context of Mac and Me

Mac and Me is a 1988 American science fiction film directed by Stewart Raffill, and co-written with Steve Feke. Starring Christine Ebersole, Jonathan Ward, and Tina Caspary alongside Lauren Stanley and Jade Calegory, it centers on a "Mysterious Alien Creature" (MAC) who escapes from NASA agents and befriends the boy Eric. Together, the two search for Mac's family, from whom he has been separated.

The film performed poorly at the box office and was universally panned by critics, partly due to its similarity to E.T. the Extra-Terrestrial (1982) and its elaborate product placement of McDonald's and Coca-Cola. It was nominated for four Golden Raspberry Awards and won Worst Director and Worst New Star (for Ronald McDonald). However, it received four Youth in Film Awards nominations. Due to its poor reception, Orion Pictures cancelled the planned sequel. While regarded as one of the worst films ever made, it has for that reason become an ironic cult classic, and was featured during the twelfth season of Mystery Science Theater 3000.

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