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Prash, A CNAME (canonical name) makes a landing page that actually resides on a Marketo server look like an extension of your own website by adding a third level domain.
At the most basic level, a CNAME is a subdomain of your website that "points" somewhere else. For example, you could have a CNAME go.mydomain.com that points to mydomain2.com. When this is set up, people will be able to replace mydomain2.com with go.mydomain.com on any of your URLs and the page will still load.
In reference to Marketo, we use CNAMEs for landing pages and links in emails. All Marketo landing pages are hosted on Marketo servers. Since you want your landing pages to be branded with your on domain, you create a CNAME on your domain that points to the Marketo servers. Then, instead of going to a Marketo domain (it would be something like mycompany.mktoweb.com), the URLs will be your own domain.