It is known that companies put their products in movies as a form of advertisement, but does product placement work? I would assume so, since brand names are increasing in the movies we see. However, many friends and I have questioned the effectiveness of product placement in movies, because it is unclear if the audience notices the brands shown in a movie. Yet, after reading about Reis-Trout and their idea of product positioning, I can see the value in flashing a product in a movie whenever, wherever, and frequently. If a product shows up enough, it will manage to establish itself in the consumer’s mind. It is also likely that to many consumers, the brand will be seen as the first product of its kind (due to its frequent appearance, it will be well known), and a brand that establishes itself as the “first” brand in a consumer’s mind is marketing gold according to Reis-Trout. Here, the product will be at the top of a consumer’s “product ladder”, meaning that you will probably think of the brand that has been flashing around in that latest popular movie when choosing a particular good/service.

Poking fun at product placement-Wayne’s World:

Should pharmaceutical companies provide affordable/accessible drugs to less affluent communities? There are several downsides to ‘accommodating’ these communities-a loss of profit is almost guaranteed. However, if a company discovers a helpful drug, is it not their duty to make it available to as many people as possible? From Friedman’s point of view, the goal of the company would be to make a profit-the company would offer it’s drug to those willing to pay. Members of the company could still practice “social responsibility” by donating the drug to those in need, but with their own personal funds. If the company took a purely profit driven approach to selling/supplying the drug, those members of the company would benefit financially, which could mean more money available to assist the needy. I think this approach is effective if those who benefit from the sales use their personal earnings to help those who missed out on the drug.

In the article below, the drug was initially tested on those living in poorer countries. Should the company give test patients a glimpse of a drug that improves their health, and then not offer it in their countries because the majority cannot pay the premium price?

http://www.nytimes.com/2004/03/05/us/companies-facing-ethical-issue-as-drugs-are-tested-overseas.html

http://www.colorado.edu/studentgroups/libertarians/issues/friedman-soc-resp-business.html

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