Students’ perceptions on the effectiveness of product placements: a case study of a private higher education institution in Durban.

Abstract

The development of technology has changed the way in which business is practiced and has had a profound impact on marketing and advertising. Organisations and brands have identified that it is important to attract and retain loyal customers. Advertising and the implementation of marketing communications strategies has been designed to create awareness about a product or brand and change the purchasing behaviour of consumers The saturation of advertisements within the various media has propelled marketers to employ not only a variety of approaches but to seek unique ways in which to market their products. The introduction of television has opened the door for companies to strategically place their products in movies, television programmes and music videos. The youth market represents an attractive market for many organisations, as satisfying this demographic’s needs early in their life cycle can result in the development of long-lasting and profitable relationships. As the youth are highly exposed to movies and television programmes, many marketers have been attracted to add product placements in visual media into their overall marketing communications strategy. However, results have indicated that product placements are similar to traditional advertising in terms of capturing the audience’s attention, developing positive feelings towards the product and recall when faced with a purchase decision. It was also established that students believe other marketing communication tools, such as digital and social media advertising, sponsorships, sales promotions and even traditional advertising as being more effective than product placements. This finding allows marketers to question whether they should use this approach when targeting a younger demographic, such as students.