CROWDFUNDING: AN INNOVATION IN THE AGE OF DIGITAL MARKETING

Smriti Pathak

Abstract


Entrepreneurs today establish the startups based on their own value chain using digital technology. Digital Marketing helps startups to focus attention of crowd through innovation and new marketing techniques. Crowdfunding is the collection of funds from people by marketing product / idea / startup online through internet platforms using digital technology.
Crowdfunding is emerging as a billion dollar industry with funding opportunities available across platforms to entrepreneurs, organizations, and companies like Honda, Coca-Cola etc. Crowdfunding allows customers to fund for a product or cause themselves. Dell used this to fund the purchase of a laptop for college students. Honda used the platform of Indiegogo.com to raise funds for a project (social cause). KimberlyClark used this on moms to develop innovative products for children (FMCG product). The most famous crowdfunded product ‘Pebble Watch’ started pushing hard on the founders to make the watch waterproof (by the crowd) that the company had to add this feature before it closed the campaign.
Smart brands have realized that crowdfunding provides focus groups online which help elevate the value n existence of their product. If any firms / organization or company wants to be at the forefront of digital cutting-edge integrated marketing tool it has to ‘innovate’. The paper tries
to analyze crowdfunding as an opportunity for innovation in the digital age. It uses questionnaire to gather data from platform providers and startups to judge how important is digital technology for crowdfunding. It also lists certain pros and cons for crowdfunding in the age of digital marketing.


Keywords


Crowdfunding, Honda, Dell, Kickstarter, Ignite Intent, Wishberry, Ketto

Full Text:

PDF

References


Ethan R. Mollick (2013),‘The Dynamics of Crowdfunding: An Exploratory Study’ published in Journal of Business Venturing, Volume 29, Issue 1, January 2014, Pages 1–16 [2]Sebastian Dehling (2013),’Crowdfunding – A Multifaceted Phenomenon’ A thesis under University of Twene [3] Loreta Valanciene; Sima Jegeleviciute (2014), ‘Valuation Of Crowdfunding: Benefits And Drawbacks’ published in Economics And Management: 2013. 18 (1) ISSN 2029-9338 (ONLINE) [4] Ross Brown, Suzanne Mawson, Alexander Rowe and Colin Mason (2015),’Harnessing the Crowd: The Demand-Side Dynamics of Equity Crowdfunding in Nascent Entrepreneurial Ventures’ WP Nº 15-009 [5] Bailey And Horvitz (2010).’What’s your idea? A case study of a grassroots innovation pipeline within a large software company’ published in Proceedings of the ACM SIGCHI Conference on Human Factors in Computing Systems (CHI). Atlanta, GA: ACM, pp. 2065–2074. [6] Belleflamme, Lambert And Schwienbacher (2010). ‘Crowdfunding: An Industrial Organization Perspective’ published in workshop for Digital Business Models: Understanding Strategies, held in Paris on June. pp. 25–26. [7] Esposti, C. (2012). ‘Crowdfunding Industry Report: Market Trends, Composition and Crowdfunding Platforms, crowdsourcing.org’. [8] Gerber, E.M., Hui, J.S. And Kuo, P.-Y., (2012). ‘Crowdfunding: Why People are Motivated to Post and Fund Projects on Crowdfunding Platforms’ presented in ACM SIGCHI Conference on Computer Supported Cooperative Work and Social Computing (CSCW), Workshop on Design, Influence, and Social Technologies. Seattle, WA.

Kickstarter.Com, (2012) ‘Ouya: A New Kind of Video Game Console’ http://www.kickstarter.com/projects/ouya/ouya-anew-kind-of-videogame- console. [10] Malone, (2009). ‘Harnessing Crowds: Mapping the Genome of Collective Intelligence’ published in MIT Sloan Research Journal of Creative Behavior, 6(3), pp.164–186. [11] Schwienbacher, A. And Larralde, B.(2015), ‘Crowdfunding of Small Entrepreneurial Ventures’ published In Handbook of Entrepreneurial Finance by Oxford University Press. [12] Ward, C. And Ramachandran, V., (2010). ‘Crowdfunding the next hit: Microfunding online experience goods’.


Refbacks

  • There are currently no refbacks.