Application of Crowdsourcing in Marketing

Nowadays, a growing number of companiesis focusing on cost optimisation and lowering labour expenses. In this climate, companies are turning to talented and educated individuals who are ready to participate in their projects. Whether it is for profit or non-profit purposes, or it is done by using online technologies or without them, this new business model is called crowdsourcing. This term is used for describing outsourcing process that focuses on the power of people for solving different types of tasks. The aim of this paper is to define crowdsourcing and its difference from similar models such as open innovation, user innovation, open source and outsourcing. The authors put focus on the application of crowdsourcing in marketing, particularly in market research, product development and promotion, as well as on examples of successful practice in these areas. Finally, the conclusions regardingfurther use of this model will be presented by taking a closer look atits advantages and limitations.