The Concept of Cloud Marketing
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Novi Ekonomist Submitted: 07.05.2019. Vol 13(2), Year XIII, Issue 26, july - december 2019. Accepted: 03.06.2019. ISSN 1840-2313 (Print) 2566-333X (Online) Review DOI: 10.7251/NOE1926049G UDK: 004.738.5:339.13]:658.8 THE CONCEPT OF CLOUD MARKETING Zvjezdana Gavrilović University of East Sarajevo, Faculty of Business Economics Bijeljina Republic of Srpska, Bosnia and Herzegovina [email protected] Mirjana Maksimović University of East Sarajevo, Faculty of Electrical Engineering Republic of Srpska, Bosnia and Herzegovina [email protected] Paper presented at the 7th International Scientific Symposium „EkonBiz: Modern business in the function of the development of the national economy―, Bijeljina, 20-21nd June 2019. Abstract: Industry 4.0 can be interpreted as a marketing strategies, and the increase in return on business discipline that has led to the automation investment. and digitalization of business systems thanks to Internet of Тhings, Cyber Physical Systems, Key words: Cloud marketing, Industry 4.0, ICT, Cognitive computing, but also Cloud computing marketing Cloud platforms that is crucial to the continuous development of Industry 4.0, because Cloud-based technology 1. INTRODUCTION connects and centralizes information essential for Every industrial revolution had been the result of business, and in addition provides an open source technological progress. Today we are witnessing platform that improves research for the entire the fourth industrial revolution – Industry 4.0, industry. In order to meet customer needs, which anticipated outcomes are productivity and different industrial branches apply Cloud economic growth higher than ever, and advanced computing which allows companies to adapt more welfare (Morrar, Arman, and Mousa, 2017). easily to ongoing technological innovations. Cloud computing with unlimited networking capabilities Internet of Things (IoT), Cyber Physical Systems enables businesses to optimize their business (CPS), Robotics, 3D printing, Big data, Cognitive processes and activate their applications, which computing, Cloud computing and Augmented provide them with data necessary for business reality are the principal drivers of an Industry 4.0. analytics. Additionally, thanks to innovative (Fig. 1). Networking a wide range of novel applications on the Cloud platform, personal technologies in a four industrial revolution has adaptation to the individual needs of users is created the opportunities that past revolutions made. All of this has also affected the emergence could not, hence greatly influencing the way of of Cloud-based marketing, which implies the living and behavior of both individuals and activity of organizations focused on the digital organizations. Industry 4.0 innovations are delivery of products and services tailored to users’ accessible to low and medium enterprises as same individual needs. This paper analyzes the concept as to large organizations (World Economic Forum, of Cloud marketing and defines Cloud marketing 2019). platforms that contribute to the optimization of НОВИ ЕКОНОМИСТ | 49 | NOVI EKONOMIST Figure 1. The fourth industrial revolution – Industry 4.0 Source: PwC (2016) In the marketing domain, the early and full Having in mind that key technological adoption of technology will result in connected, developments in Industry 4.0 lead to fully transparent, optimized, proactive, and agile connected, intelligent and innovation-based marketing campaigns. Industry 4.0 allows economy it is clear that the adoption of the marketers to communicate with each consumer, Industry 4.0 becomes essential in order to stay get information about consumer habits, competitive in a globalized environment (Nagy, preferences, needs, and desires, and create Oláh, Erdei, Máté, and Popp, 2018). Cloud consumer-tailored campaigns. In other words, computing plays a key role in the delivery of modern marketing approaches are established on immense changes in industries, markets, and data collected through various means from business processes. Therefore, this paper tries to different sources. The escalating number of IoT help in understanding the symbiotic relationship devices produces data described with 5 V's: between Cloud computing and marketing domain, volume, velocity, variety, value, and veracity. The and their contributions in creating new marketing collection, processing, and analyzing IoT-produced dimension, known as Cloud marketing. data, and making the right decisions are the main challenges for marketers. Cloud computing plays a key role in dealing with the escalating volume of 2. CLOUD COMPUTING - BASICS fast-generated heterogenous IoT data and There is no doubt that the widespread adoption of knowledge extraction. Cloud computing provides Industry 4.0, will increase productivity and bring the means through which everything can be numerous socioeconomic benefits (Morrar et al., delivered as a service in any time at any place 2017; World Economic Forum, 2019). One of the (Software as a Service (SaaS), Platform as a technologies that is a key driver of the fourth Service (PaaS), Infrastructure as a Service (IaaS)). industrial revolution is Cloud computing. Cloud The symbiosis of Cloud computing and marketing computing means the delivery of software, has created a Cloud marketing - a new term that infrastructure and storage services over the Internet describes the business’s marketing efforts (Watts, 2016; Harris, n.d.; ICT Qatar, n.d.): implemented via search engines, blogs, digital ads, and e-mail. Cloud marketing with the help of Software as a Service (SaaS) – software Industry 4.0 becomes timely and personalized distribution model in which service marketing approach. Development and delivery of provider hosts the software and end-user personalized marketing messages increase the can use it over the Internet, without the satisfaction of consumers, sales and profits. need to install the software. НОВИ ЕКОНОМИСТ | 50 | NOVI EKONOMIST Platform as a Service (PaaS) – delivery of infrastructure, Cloud computing solutions simplify a platform for software creation to the the manner in which business operates (Watts, end-user over the Internet. 2016). The main benefits Cloud computing brings Infrastructure as a Service (IaaS) – on- are: reduced costs, increased storage, flexibility, demand and as-needed renting a highly work from anywhere at whatever time, increased scalable and automated compute collaboration, security, environmentally friendly, resources. and so on (Fig. 2.) Due to all these benefits, it is evident that migration to the Cloud is the future of Whether there is a need for Cloud-based software, the business. a smooth platform for the creation of customized applications, or complete control over entire Figure 2. Cloud computing benefits Source: Authors customers and easier ways to reach them. In other 3. CLOUD MARKETING words, marketing in the Cloud changes the company’s way of collection, storage, and The main benefits Cloud computing brings are utilization of a variety of data and interaction with easier access to a variety of data, powerful data the customers (Figone, n.d.). Cloud marketing is analysis, predictive actions, and intelligent customary marketing combined with SaaS, and decision making. Increased usage of the Internet- includes data services, automation, targeting, and connected devices and currently available content (Pat Research, n.d.). With the help of technologies have enabled companies easier Cloud-based digital marketing platforms, collection of data about current and potential marketers can track their campaigns and efforts in НОВИ ЕКОНОМИСТ | 51 | NOVI EKONOMIST real-time and approach to customers via digital development of personalized and targeted channels (web, mobile, e-mail, social media) (Fig. marketing messages. In this way, marketing and 3). Using Cloud tools and data about consumer's sale of products and services are completely habits, need, and preferences, marketers can changed, while consumer engagement and optimize marketing strategies through the satisfaction increases (Figone, n.d.). Figure 3. Cloud marketing Source: (RSystems, n.d.). Benefits of Cloud marketing (Fig. 3) are Cloud marketing automates time- (Marketing Schools, n.d.; Lad, 2016): consuming tasks. Reduced marketing costs – With digital Adobe Marketing Cloud, Salesforce Marketing formats and channels, printing costs, Cloud, Oracle Marketing Cloud, Nielsen advertising time costs, and company- Marketing Cloud, IBM Interactive Marketing customer communication costs are Solution, HP Marketing Optimization, FICO significantly decreased. Analytic Cloud, Hubspot, Message Cloud, Less wasted marketing materials – When AgilOne Predictive Marketing Cloud, Marketo a marketing campaign is over, it is easily Engagement Marketing Platform, and Teradata erased from the Internet. Marketing are some of the top Cloud marketing Ease of implementation – Cloud platforms (Pat Research, n.d.). marketing programming in a SaaS model requires only an Internet connection. Three best Cloud marketing platforms are: Increased customization – Web-based Adobe Marketing Cloud - is an all-in-one interactive mediums enable more marketing solution that includes: Adobe relevant, focused and effective Analytics, Adobe Audience Manager, advertising. Adobe Campaign, Adobe Experience Increased mobility and efficiency – Manager, Adobe Media Optimizer, Placing marketing resources in the Cloud Adobe Primetime, Adobe Social and enable access anytime and anywhere. Adobe Target (Fig. 4).