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zbw2 replied to the topic Discussion Topic: The Fifth "P" of Marketing in the forum Marketing and Sales 7 years ago
Another way companies utilize participation is with crowdfunding. Companies like Kickstarter have allowed companies, usually startups, to run a ‘campaign’ to fund a product. the ‘backers’ are treated as ground floor contributors and are encouraged to feel some kinship with the company in launching the project. the backers are given early access, special discounts, and exclusive information about the product’s development. this is also to put pressure on the backers to fully fund the project in order to receive the product advertised.
while many small companies have used crowdfunding to launch products, it has been utilized by companies that do not necessarily need the capital to launch their products. This type of customer participation has enabled companies to make millions of dollars in sales in that the first month of the product launch, seemingly skipping the introduction phase of sales. Pebble, smartwatch company started in 2012, raised $1 million in the first hour of its second Kickstarter campaign in 2015.