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Globalization has many impacts in the world such as the advances of infrastructure, technologies and telecommunications. Those advances create a high competition among business industries. To compete within its market and customer, business industries must build a strong brand and creatively utilize various marketing tools. Marketing tool that is currently popular and effective can be identified as product placement that focuses on analyzing the impact of the appearance and use of a product on TV to customers.
Wider audience is reached by product placement because film can be seen in any time and any place. Furthermore, product placement provides unlimited access to customers and lower cost than TV advertisement. Often, product placement in films is unnoticed because it blends well with the storyline and naturally used by actresses. Consequently, it will create value for costumers.
The term ‘product placement’ was commonly used in early 1980s for placing products in a communication media such as films, theater performance, television program and continuously used in the scientific community (Hanna & Kulykovets, 2016). Product placement known as non-traditional method and attractive path to reach customers awareness, advance consumer recognition, and further affects consumer preference and purchase intention which in practice customers often unaware of the commercial persuasion effort (Srivastava, 2016).
There are three main characteristic of product placement:
- Visual. Product shows for a few minutes or second usually in transition of a film, just to draw attention of viewer by its physical information like name, shapes or etc. As an example, name of brand shows in a billboard when actress driving.
- Spoken. Used as short promotion object where product mentions during the film as a dialogue. As an example, when brand or product’s name spoken in a decision making when actress shopping.
- Plot. Product was in line with the story and has an interaction with actress. Usually it shows demonstration of using the product and aiming to raise customers’ willingness to buy. As an example, actress chooses and wears some product in the preparation for dating.
Each characteristic of product placement have a hybrid message, a hidden but paid message for customers. Generally, a firms or business industries pay for product placement to inclusion product names or image. However, this day, product that placed in a film has a possibility in exchange for being film properties so it was beneficial for both entities because stated by Pulliam (2012) product placement used by film makers as creative decision making process that help tell their story.
Product placement in a 30 second commercial has several advantages. First, it is make sure that the message is integrated within the content of the TV program. Next, product placement offers a less intrusive solution. Product placement also has an unlimited range to reach customers, and unlimited access for display. Last, product placement was cost less compared to other types of advertisements.
Looking at product placement from customers’ perspective is way to understand product placement mechanism and systems. In this globalization era, customers’ perspective is crucial to make decisions and develop business in effective and modern ways.
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