Product Placement Thesis

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A study of the effectiveness of the use of leisure entertainment as an advertising tool in marketing strategy

CHAPTER I
INTRODUCTION

CHAPTER 1
1.0INTRODUCTION
The introduction will contain a brief background on the chosen research topic, problem statement upon which the research questions have being built. It will further give an insight into the scope, objectives, purpose and significance of the research.

1.1BACKGROUND
Rotfeld (2006), suggested that avoidance of mass media advertising has become easier for target audience as it is considered to be time for breaks such as; snacks time, refreshing time, toilet and other activities. Invention of technologies in recent years have also worsened and deepened the difficulty in reaching audiences appropriately; this is due to increased level of noise throughout the communication process. (Kotler, et al. 2005) explained noise as the element which is usually unplanned static or distortion to communication process; furthermore it prevents audience from reception of message being passed. This situation presents an appearance that suggests that mass media advertising might be a wrong choice for its sponsors. In support of this, Gupta, Balasubramanian, and Klassen (2000), explained that these circumstances encourage sponsors to explore alternative media or non-traditional communication strategies in advertising.

As a result of noise, recent practices have seen sponsors adopt alternative advertising media style of communication in their integrated marketing plan. Sponsors are found to pay heavily in adopting these alternatives particularly in the area of incorporating their messages into leisure entertainment and using it as a communication media. In adopting leisure entertainment; product placement, sponsorship of TV shows, and sports sponsorship are few techniques used by sponsors to communicate their message to the audience. In view of the growing challenges in the planning of mass media advertising and the continuous rise in the adoption of leisure entertainment as a new and preferred advertising communication medium; the researcher as chosen to undertake a research which is centered around the “study of the effectiveness of the use of leisure entertainment as an advertising tool in marketing strategy”.

1.2PROBLEM STATEMENT
Exuberant amounts are being paid by sponsors in adopting leisure entertainment as an alternative advertising communication tool. As an example, (John Vivian, 2002) reports that in adopting the use of product placement, “a simple shot of a product in the foreground typically goes for about $25, 000 to $50, 000” other alternatives are equally expensive. Survey shows that product placement in television alone as shown a momentous increase in recent years. (Lights, camera, 2005) reports that, in 2004 it had grown by 46% and by adding films, magazines, videogames, music as well as TV the market was worth an estimated $3.5 billion by the same year. Earlier, (Morton & Friedman, 2002) argued that the effectiveness of these alternatives has not been so successful for every sponsor and their products alike. It therefore becomes difficult to examine and authoritatively conclude on the reliability of its investment returns. All of these raise curiosity as to whether the use of leisure entertainment as an alternative strategy to mass media advertising guarantees better communication to target audience than the traditional strategies of mass media advertising in marketing strategy. 1.3RESEARCH PURPOSE AND SIGNIFICANCE

Based on the stated problem, the purpose and significance of this research work is to identify the degree of effectiveness in the use of leisure entertainment as an alternative to mass media advertising, its audience reach, ensuing impact on communication process and rationale on its adoption by sponsors. It will also seek to suggest the possibility in the use of leisure entertainment as a tool to overcome “noise” in communication...
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