Akchurina, A.

Bondar, I.

Mel’nikova, I.

Yelizarov, I.

English

eLibrary National Mining University

23Bondar I., Yelizarov I., Akchurina A.Mel’nikova I., research supervisorKryvyi Rih National UniversityCROWDSOURCING AS A MARKETING MODELCrowdsourcing is the process of transferring certain functions to create customervalue and other marketing functions to the public on the basis of a public offer on thepart of the firm organizing the crowdsourcing project. According to many specialistsfrom different organizations applying crowdsourcing in their activities its potential islimitless.For the first time the term "crowdsourcing" is believed to be used in 2006 by thejournalist Jeff Howe in the article «The Rise of Crowdsourcing» for the Wiredmagazine. Howe argued that a group of amateurs who are working at some task canoften give better results than professionals, because the best for each job are thosewho want to fulfil it the most. Experts, even the most intelligent, will always be morelimited than thousands of enthusiasts.The basis of all projects applying crowdsourcing is talented people who areready to donate their time. Enthusiasts engaged in such projects usually seek not onlyto earn money but also to get psychic income from the work. Perhaps, that is whyuncommercial projects have still been the scaliest examples of crowdsourcing.The main advantages of crowdsourcing:1) Unprecedented speed (thousands of people think over the solution of businessproblems at the same time);2) Excellent quality of the finished product (apart from the people generatingideas, qualified specialists work on crowdsourcing project, constantly monitor theproject and "screen out" non-viable solutions);3) Cost-beneficial results (launching a crowdsourcing project, you save up to80% of the resources that would be spent on this project without applying thecrowdsourcing technology);4) Proved model (rapid growth of crowdsourcing as a marketing model testifiesto the effectiveness of this method of enhancing services, solving laborious andresource-intensive business problems, developing new ideas and receiving directfeedback from customers).The increased popularity of the traditional type of crowdsourcing has alsorevealed its disadvantages –useless "noise" of ideas generated by users, lack ofmotivation of volunteers, as well as the final product quality reduction. However, inspite of the drawbacks crowdsourcing finds new applications in many industries. Andthe "noise" produced by crowdsourcers can be coped with by structuring andfulfilling the task correctly.Crowdsourcing is increasingly used by business companies, public authorities24and non-profit organizations. Crowdsourcing is used in many successful projects invarious spheres – from legislation (the constitution of Iceland), software to new sortsof ice-cream. "Wikipedia" is the most famous of the projects. Crowdsourcing in theenvironmental protection provides an opportunity to carry out large-scale projectscovering large areas. With the development of information technology an onlinecommunity can continuously participate in the solution of environmental problems ofboth their region and other territories.Bondar I., Yelizarov I., Livads’ka M.Mel’nikova I., research supervisorKryvyi Rih National UniversityPRODUCT PLACEMENTProduct Placement is a special technology of embedded advertising when theproduct is not advertised directly but mentioned or shown in films or television seriesas part of the episode. In other words it is an advertising technique, which consists inthe fact that the props in movies, television programs, computer games, music videos,or a book has real a commercial counterpart. The advertised product itself, or its logo,or its good quality or the manufacturing company is usually shown or mentioned.In the 1980s the product placement became a full-fledged, independent industry.By the end of the decade all major Western studios had organized departmentsspecializing in the product placement. Product placement in feature films wasconsidered a viable and very effective way of promoting goods. In the early twenty-first century, the situation with the use of the product placement technology began tochange, because direct advertising palled, and some manufacturers started toincreasingly build their campaigns on product placement.Efficiency of product placement consists in a fact that human vision accounts forperception of 80% of information about the world. While watching a movie or sceneviewer gets both a picture and sound, hence the impact on information channelsapproximates 100%. Efficiency of correct product placement influence significantlyexceeds that of direct advertising and is unobtrusive. Besides, it sometimessignificantly adds to the film. Another efficient promotion tool (that does not requireadditional investment at that) is the association of the brand with film, TV, sportcelebrities. While watching a film viewers do not feel that they are being foisted offthis or that product on. Film characters live among things, use them, talk about them -and this is quite natural.No modern film can do without advertising, as a means of compensating forexpensive shooting. That is why TV and cinema screens are filled with different paidinscriptions, slogans, names. Involvement of greater number of advertisers is verybeneficial to filmmakers. Neither recognizable product can appear on the screen

CROWDSOURCING AS A MARKETING MODEL

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CROWDSOURCING AS A MARKETING MODEL

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