We are in an era of massive disruptions in markets, media, management approaches and business models. These disruptions are being caused by rapid technological changes on the one hand and tectonic shifts in customer preferences and societal behaviour on the other. Marketing knowledge and practices have to advance at a significantly higher pace to address the changing context of market behaviour. Handbook of Advances in Marketing in an Era of Disruptions is meant to share ideas and new knowledge that are relevant to this world of disruptions. Leading scholars from around the world, who have keenly observed the changing market environment, business policies, parameters, theories, methods and practices, have put forth their theses on how marketing thinking needs to evolve to keep pace with the market reality.
Chapter 15: Funding by the Masses: Crowdfunding Platforms and Their Disruption of Traditional Marketing Functions
Crowdfunding is an alternative model of raising funds that has leveraged on the network effects of the Internet to reach out to the masses. We look at what crowdfunding entails and the different models of crowdfunding that have developed. More importantly, we track how crowdfunding has become a disruption, not only to the finance sector but also to the marketing sector. Crowdfunding allows projects that would have failed in receiving funds a viable alternative. Crowdfunding also allows creators to provide validation, receive feedback, reach and engage ...