Download MKT 3230 CONSUMER BEHAVIOUR Namita Bhatnagar

A Strategic Marketing Perspective of PR Activities
Integration, Compatibility, and Caveats Associated
with Constructing Corporate Communications
Namita Bhatnagar
Asper School of Business
Overview
• What is marketing?
• What is the marketing process?
• Where does PR reside within this framework?
• Typical PR functions highlighted by marketers and opportunities
for product related communications.
What is Marketing?
Marketing Communications
“Let your customers know”
Market Research
“Listen to and understand your customers”
Marketing is Customer Centricity
• Selling : Marketing :: Product orientation : Customer orientation
• Customer relationship marketing
• “The delivery of customer satisfaction at a profit”
Marketing Plan
Communications Model
Source
Message
Medium
Transmission
Stakeholders
Feedback
The Elaboration Likelihood Model
(Petty & Cacioppo, 1986)
• How involved are customers in the purchase?
• Central Route to Persuasion
– Highly involved customers
– Think about arguments presented and carefully consider them
– People respond to message quality/credible sources
• Peripheral Route to Persuasion
– Less involved customers
– Not motivated to think about arguments presented
– People response to peripheral marketing stimuli/attractive sources
Persuasion Knowledge Model
(Friestad & Wright, 1994)
• Coping via skepticism when PK triggered
• Leads to greater scrutiny, use of the central route
• Resistance to traditional advertising, skepticism
Hybrid Communications
Product Placements
Pros
Cons
Advertising
Controlled
Not credible
Publicity
Credible
Lack of control
• Brands embedded within entertainment/editorial content
– Paid for, sponsorship not disclosed
• Controlled and credible brand message
History and Evolution of Brands in Popular
Entertainment
• Long before Tom Cruise sported Ray-Ban’s Wayfarer
sunglasses in the movie Risky Business in the 1980s (Leinster,
1987), a Corona typewriter was featured in the movie The
Lost World in the 1920s (Cowan, 2009).
• Casual, ad hoc arrangements have turned into systematic and
transactional ones
The Systematization of Product Placements
• Big successes in the 1980s (e.g., for Reese’s Pieces in the movie E.T. the
Extraterrestrial)
• Motivations for companies:
– Widespread access to ad-skipping technologies
– Skepticism toward ads
• Motivations for producers:
– Major revenue source (e.g., ‘Man of Steel’; Bignell & Dunne, 2013)
• Rise in worldwide spending over past decade:
– up 10.2% to $7.4 billion in 2011; expected to double by 2016 (PQ Media,
2012).
• Spans media (e.g., TV programs, movies, music, video games, books, and
other media; DeLorme & Reid, 1999).
Enterprise Branding Opportunities
• HR opportunity: Branding an enterprise/organization (as a great
place to work with the goal of attracting talent) as opposed to
the products it makes
• Google in the Internship
• Facebook in the Social Network
• US National Guard’s Soldier of Steel campaign in tandem with
the Man of Steel
PR Firms’ Involvement in Product Placement Deal
Making
Ethics and Call for Sponsorship Disclosures
• People need awareness/PK
• Demands for the protection through regulating placements and
instituting sponsorship disclosures (e.g., Campbell et al., 2013).
• Yet, placements are so common today that they are not hard to
detect (Karniouchina et al., 2011).
Regulatory Responses to Placements
• The US: the FTC requires disclosures before & after the program, and
is considering disclosures at the time of the placement (Cain, 2011).
• The EU: restrictive regulations require logos and texts that explicitly
indicate the presence of sponsorship.
• Finland and Ireland: placements are illegal.
• Canada: the practice is considered legitimate, and is unregulated.
– Placements in Canadian TV shows outstrip Hollywood (Moretti, 2010).
– The Canadian Radio-television and Telecommunications Commission (CRTC)
no longer considers placements within the 12 min/hr cap for on-air TV ads.
– However, the CRTC remains open to guidance based on the extent and effects
of placements (Ginosar & Levi-Faur, 2010).
Questions around Sponsorship Disclosures
• Are people aware and accepting of placements?
– Are sponsorship disclosures needed?
• Are there any media context effects (Bronner & Neijen, 2006)?
– Disclosures lower evaluations of radio shows, the host, and the radio station
(Wei et al., 2008)
• What should the disclosure format and timing be?
– Most persistent disclosures evaluated unfavorably (Van Reijmersdal et al.,
2013)
– Is it possible to protect welfare, while also protecting the brand/program?
• Effects for varying genres with varying immersive-ness (Slater &
Rouner, 2002)
The Reality is…
• Brand placements are here to stay and are only likely to intensify
(PQ Media Global Product Placement Forecast 2012-2016).
• It is necessary to understand whether and in what form
consumer welfare needs protection.
• PR firms need to be part of the conversation.
Questions?
REFERENCES
Arango, T., & Stelter, B. (2009, April 2). Messages with a mission, embedded in TV shows. The New York Times. Retrieved from
http://www.nytimes.com/2009/04/02/arts/television/02gates.html?_r=0
Babin, L. A., & Carder, S. (1996). Viewers’ recognition of brands placed within a film. International Journal of Advertising, 15, 140-151.
Balasubramanian, S. K. (1994). Beyond advertising and publicity: Hybrid messages and public policy issues. Journal of Advertising, 23, 29-46.
Balasubramanian, S. K., Karrh, J. A., & Patwardhan, H. (2006). Audience response to product placements: An integrative framework and future research
agenda. Journal of Advertising, 35(3), 115-141.
Bearden, W. O., Hardesty, D. M., & Rose, R. L. (2001). Consumer self-confidence: Refinements in conceptualization and measurement. Journal of
Consumer Research, 28, 121-134.
Benjamin, B. M. (2005). Better disclosure: How to make product integration more transparent for viewers. Mediaweek, 15(46), 19.
Bennett, M., Pecotich, A., & Putrevu, S. (1999). The influence of warnings on product placements. In B. Dubois, T. M. Lowrie, & L. J. Shrum (Eds.), E.
European advances in consumer research. Provo, UT: Association for Consumer Research.
Bhatnagar, N., & Aksoy, L. (2004). “Et tu, Brutus?”: A case for consumer skepticism and backlash against product placements. In B. E. Kahn, & M. F. Luce
(Eds.), Advances in consumer research, 31, Association for Consumer Research.
Bhatnagar, N., Aksoy, L., & Malkoc, S. (2003). Embedding brands within media content: The impact of message, media, and consumer characteristics on
placement efficacy. In L. J. Shrum (Ed.), The psychology of entertainment media: Blurring the lines between entertainment and persuasion (pp. 99-116).
Mahwah, NJ: Erlbaum.
Bhatnagar, N., & Wan, F. (2011). Is self-character similarity always beneficial?: The moderating role of immersion in product placement effects. Journal
of Advertising, 40(2), 39-50.
Biema, D. V. (1982). Life is sweet for Jack Dowd as Spielberg's hit film has E.T. lovers picking up the (Reese's) pieces. People, 18(4). Retrieved from
http://www.people.com/people/archive/article/0,,20082729,00.html
Bignell, P., & Dunne, L. (2013, June 10). Superman is already a $170m brand superhero as Man of Steel tops the product placement charts. The
Independent. Retrieved from http://www.independent.co.uk/arts-entertainment/films/news/superman-is-already-a-170m-brand-superhero-as-man-ofsteel-tops-the-product-placement-charts-8651215.html?printService=print
Birnbaum, M. H. (1999). Testing critical properties of decision making on the internet. Psychological Science, 10, 399-407.
Bosman, J. (2006, March 10). US: For tobacco, stealth marketing is the norm. The New York Times. Retrieved from
http://www.nytimes.com/2006/03/10/business/media/10adco.html
Boush, D. M., Friestad, M., & Rose, G. M. (1994). Adolescent skepticism toward TV advertising and knowledge of advertiser tactics. Journal of Consumer
Research, 21, 165-175.
Bronner, A.E., & Neijen, P.C. (2006). Audience experiences of media context and embedded advertising: A comparison of eight media. International
Journal of Market Research, 48, 81–100.
Brown, W. J. (1992). Sociocultural influences of pro development soap operas in the Third World. Journal of Popular Film and Television, 19(4), 157-164.
Bucklin, L. P. (1972). Competition and evolution in the distributive trades. Englewood Cliffs, NJ: Prentice-Hall.
Calfee, J. E., & Ringold, D. E. (1988). Consumer skepticism and advertising regulation: What do the polls show? In M. J. Houston (Ed.), Advances in
consumer research (pp. 244-248).
Campbell, M. C., Mohr, G. S., & Verleigh, P. W. J. (2013). Can disclosures lead consumers to resist covert persuasion?: The important roles of
disclosure timing and type of response. Journal of Consumer Psychology, 23(4), 483-495.
Cain, R. M. (2011). Embedded advertising on television: Diosclosure, deception, and free speech rights. Journal of Public Policy and Marketing,
30(2), 226-238.
Coomber, R. (1997). Using the internet for survey research. Sociological Research Online, 2(2).
Cowan, J. (2009, December 7). Mad Men and the art of stealth branding. Canadian Business. Retrieved from
http://www.canadianbusiness.com/business-strategy/mad-men-and-the-art-of-stealth-branding/
DeLorme, D. E., & Reid, L. N. (1999). Moviegoers’ experiences and interpretations of brands in films revisited. Journal of Advertising, 27, 71-95.
Doucette, E. (2013, October 7). The new era of product placement in viral videos. Forbes. Retrieved from
http://www.forbes.com/sites/elisadoucette/2013/07/10/the-new-era-of-product-placement-in-viral-videos/
Eagly, A. H., Wood, W., & Chaiken, S. (1978). Causal inferences about communicators and their effect in opinion change. Journal of Personality
and Social Psychology, 36, 424-435.
Freeman, W. (2013, July 13). Six of the best product placements in video games. The Observer. Retrieved from
http://www.theguardian.com/technology/2014/jul/03/six-of-the-best-product-placement-video-games
Friestad, M., & Wright, P. (1994). The persuasion knowledge model: How people cope with persuasion attempts. Journal of Consumer Research,
21, 1-31.
Fujawa, J. (2012). The FCC’s sponsorship identification rules: Ineffective regulation of embedded advertising on today’s media marketplace.
Federal Communications Law Journal, 64(3), 549-575.
Ginosar, A., & Levi-Faur, D. (2010). Regulating product placement in the European Union & Canada: Explaining regime change and diversity.
Jerusalem Papers in Regulation & Governance, Working Paper No. 14. Retrieved from http://regulation.huji.ac.il/papers/jp14.pdf
Gorman, S. (2006, February 27). Digital product placement alters TV landscape. Reuters. Retrieved from http://www.backstage.com/news/digitalproduct-placement-alters-tv-landscape/
Guidry, K. (2014, March 7). 'The secret life of Walter Mitty' declared worst offender for product placement in movies in 2013. The Playlist.
Retrieved from http://blogs.indiewire.com/theplaylist/the-secret-life-of-walter-mitty-declared-worst-offender-for-product-placement-in-moviesin-2013-20140307
Gupta, P. B., & Gould, S. J. (1997). Consumers’ perceptions of the ethics and acceptability of product placements in movies: Product category and
individual differences. Journal of Current Issues and Research in Advertising, 19(1), 37-50.
Gupta, P. B., & Lord, K. L. (1998). Product placements in movies: The effect of prominence and mode on recall. Journal of Current Issues and
Research in Marketing, 20, 47-59.
Hackley, C., Tiwsakul, R., Preuss, L. (2008). An ethical evaluation of product placement: A deceptive practice? Business Ethics: A European Review,
17(2), 109-120.
Haidet, R. (2011, May 9). Survivor: Jeff Probst says product placement is here to stay. Reality TV Magazine. Retrieved from
http://realitytvmagazine.sheknows.com/2011/05/09/survivor-jeff-probst-says-product-placement-is-here-to-stay/
Homer, P. M. (2009). Product placements: The impact of placement type and repetition on attitude. Journal of Advertising, 38(3), 21-31.
Johnson, K. R., & Holmes, B. M. (2009). Contradictory messages: A content analysis of Hollywood-produced romantic comedy feature films.
Communication Quarterly, 57(3), 352-373.
Kaikati, A. M., & Kaikati, J. G. (2004). Stealth marketing: How to reach consumers surreptitiously. California Management Review, 46(4), 6-22.
Karniouchina, E. V., Uslay, C., & Erenburg, G. (2011). Do Marketing media have life cycles? The case of product placement in movies. Journal of
Marketing, 75, 27-48.
Karrh, J. A. (1994). Effects of brand placements in motion pictures. In: K. W. King (Ed.), Proceedings American Academy of Advertising Conference
(pp. 90-96), Athens, GA.
Klein, B. (2011). Entertaining ideas: Social issues in entertainment television. Media Culture & Society, 33(6), 905-921.
Klein, B. (2013). Entertainment-education for the media-saturated: Audience perspectives on social issues in entertainment programming.
European Journal of Cultural Studies, 16(1), 43-57.
Law, S., & Braun-Latour, K. A. (2004). Product placements: How to measure their impact. In L. J. Shrum (Ed.), The psychology of entertainment
media: Blurring the lines between entertainment and persuasion (pp. 63-78). Mahwah, NJ: Erlbaum.
Leinster, Colin (1987, September 28). A tale of mice and lens. Fortune. Retrieved from
http://archive.fortune.com/magazines/fortune/fortune_archive/1987/09/28/69577/index.htm
Lieberman, D. (2006, May 17). More ad pitches could get embedded. USA Today. Retrieved from http://www.usatoday.com/tech/news/2006-0516-placement_x.htm
Main, K., Dahl, D. W., & Darke, P. R. (2007). Deliberative and automatic bases of suspicion: Empirical evidence of the sinister attribution error.
Journal of Consumer Psychology, 17(1), 59-69.
Masnick, M. (2007). Product placement or novel? Does it make a difference? TechDirt.
Moretti, S. (2010, April 6). Canadian TV takes product placement further than Hollywood. Toronto Sun. Retrieved from
http://www.torontosun.com/money/2010/04/07/13492491.html
Nebenzahl, I. D., & Secunda, E. (1993). Consumers’ attitudes toward product placement in movies. International Journal of Advertising, 12(1), 112.
Petty, R. E., & Cacioppo, J. T. (1986). Communication and persuasion: Central and peripheral routes to attitude change. New York, NY: SpringerVerlag.
PQ Media (2012). Global product placement forecast 2012-2016. Retrieved from http://www.pqmedia.com/globalproductplacementforecast2012.html
Rich, M. (2006). Product placement deals make leap from film to books. The New York Times. Retrieved from
http://www.nytimes.com/2006/06/12/business/media/12book.html?-r=1&pagewanted=2
Russell, C. A. (2002). Investigating the effectiveness of product placements in television shows: The role of modality and plot connection
congruence on brand memory and attitude. Journal of Consumer Research, 29, 306-318.
Russell, C. A., Norman, A. T., & Heckler, S. E. (2004). The consumption of television programming: Development and validation of the
connectedness scale. Journal of Consumer Research, 31, 150-161.
Russell, C. A., & Stern, B. B. (2006). Consumers, characters, and products: A balance model of sitcom product placement effects. Journal of
Advertising, 35, 7-22.
Sandler, D. M., & Secunda, E. (1993). Blurred boundaries: Where does editorial end and advertising begin? Journal of Advertising Research, 33,
73-80.
Simonson, I. (1993). Get closer to your customers by understanding how they make choices. California Management Review, 35(4), 68-84.
Slater, M. D., & Rouner, D. (2002). Entertainment-education and elaboration likelihood: Understanding the processing of narrative persuasion.
Communication Theory, 12(2), 173-191.
Solomon, M., & Englis, B. G. (1996). Consumption constellations: Implications for integrated communications strategy. In E. Thorson & J. Moore
(Eds.), Integrated communication: Synergy of persuasive voices (pp. 65-86). Mahwah, NJ: Erlbaum.
Solomon, M. R., White, K., & Dahl, D. (2013). Consumer behavior: Buying, having and being (6th Canadian Edition). Toronto, ON: Pearson.
Steininger, C., & Woelke, J. (2008). Separating TV ads from TV programming: What can we learn about program-integrated advertising from
economic theory and research on media use? Communications, 33, 455-471.
Tsai, C. (2007). Starring brand X: When the product becomes more important than the plot. Loyola Consumer Law Review, 19(3), 289-307.
Van Reijmersday, E. A., Tutaj, K., & Boerman, S. C. (2013). The effects of brand placement disclosures on skepticism and brand memory.
Communications, 38(2), 127-146.
Wei, M-L., Fisher, E., & Main. K. (2008). An examination of the effects of activating persuasion knowledge on consumer response to brands
engaging in covert marketing. Journal of Public Policy and Marketing, 27(1), 34-44.
Wenner, L. A. (2004). On the ethics of product placement in media entertainment. Journal of Promotion Management, 10(1/2), 101-132.