Towards the development of a framework for measuring the effectiveness of product placement

Govender, Kerensa A. (2014-04)

Thesis (MBA)--Stellenbosch University, 2014.


ENGLISH ABSTRACT: A product placement or placement occurs when a brand is integrated into a film, game or sitcom for advertising purposes. This integration can either be in the form of a visual placement, verbal placement or both. The practice of product placement has become popular due to the loss of advertising effectiveness of traditional media channels. This is due to the advent of technology, which allows the consumer to avoid advertisements. Marketers have therefore sought alternative, more effective forms of advertising, leading to an increase in spending on product placement. As product placement becomes more popular, there is a growing need to justify the large amounts spent on this practice. This research addressed this need by developing a framework for practitioners to use in order to determine the effectiveness of a placement. The framework will help to provide an understanding of the returns gained from investing in a product placement strategy. This research, which is in the form of a qualitative study, has made use of both primary and secondary data sources to meet this research objective. The primary data source is based on the findings from an interview conducted with a placement-practitioner, while the secondary data was based on all published literature regarding the means of measuring the effectiveness of product placement. The study begins by reviewing the literature in order to gain an understanding of advertising effectiveness and how it has been measured by past researchers. This review and analysis led to the discovery of three stages of measuring advertising effectiveness, these are the cognitive, affective and conative stages. These three stages were used as the starting point for the development of the framework which measures the effectiveness of product placement. The literature was then analysed with the aim of determining the measures used for each stage to determine the effectiveness of a placement. These measures were grouped according to the stage within which they belonged, i.e. either the cognitive, affective or conative stages. For example, brand awareness, which was found to be a measure of product placement effectiveness, was grouped under the cognitive effects of a placement. The results of the literature analysis were validated by conducting an interview with a product placement practitioner. The aim of this interview was to gain an understanding of how the industry determines the effectiveness of a product placement. An additional category, namely financial impact, was extracted from this interview. The end result was the creation of a framework, with four categories, which can be used to determine the effectiveness of a product placement.

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