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

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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.

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 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

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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). The key features of Adobe Marketing Cloud are: marketing

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automation, A/B testing, real-time digital management, orchestration, analytics, and social insights. Hence, personalization and optimization of cross- Adobe Marketing Cloud platform enables channel campaigns (Better Buys Staff, enterprises and small to large-sized firms 2018). better understanding of customers,

Figure 4. Adobe Marketing Cloud

Source: (Singh, 2017)

 Salesforce Marketing Cloud – provides Marketing Cloud is built on Salesforce companies different functionalities such infrastructure and on Fuel platform, and as journey builder, contact management consists of various platforms: Customer tools, content management tools, Data platform (for storing customer’s analytics builder and various channels data), a Predictive Intelligence platform like e-mail and mobile. In other words, (for building predictive models of 1-to-1 this Cloud marketing platform enables customer’s journey), Marketing marketers to deliver the right offer to the Automation, Content and Messaging right customers at the right time via the platform, Analytics, and Marketing right channel (through any device on any Operations (Fig. 5) (ABSI, n.d.; Edureka, channel from the web, email, mobile, 2019). social networks, and ads). The Salesforce

Figure 5. Salesforce Marketing Cloud

Source: (Edureka, 2019)

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 Oracle Marketing Cloud – enables the management and actionable insights), delivery of the personalized, relevant, and Oracle Content Marketing, Oracle Eloqua timely customer experiences via every (marketing automation and personalized channel and at any time and in any place. campaigns) and Oracle Responsys (cross- Hence, this Cloud marketing platform channel customer experiences) with enables significant influence on Oracle Social Cloud (Fig. 6). (Pat customers, making a strong relationship Research, n.d.; Oracle, n.d., Cox, 2016). and customer loyalty. Oracle Marketing Cloud combines Oracle BlueKai (data

Figure 6. Oracle Marketing Cloud

Source: (Cox, 2016)

In the era of advanced technologies, it is inevitable online tools, and it can be used alone or in for businesses to move towards Cloud marketing combination with traditional forms of platforms and tools. With Cloud marketing, communication. With the technology progress, companies better understand the customers' needs, there is no doubt that the growth and importance of create targeted and personalized marketing Cloud marketing will be greater. Coordination of campaigns and reach customers across any device marketing activities in the Cloud is simplified and any channel at any time. With higher customer thanks to Cloud marketing platforms. These engagement, satisfaction, and loyalty, companies platforms enable the easier collection of customer- boost their Return on Investment (ROI). related data, their analysis and predictive analytics followed with the personalized promotional

activities. Knowing more about current and CONCLUSION potential customers, companies can make smarter business decisions, that will result in increased One of the key drivers of the development of profit and satisfied customers. This paper presents Industry 4.0 is computing in the Cloud which three of the most famous Cloud marketing advantages consist of simplicity, reachability, platforms, Adobe Marketing Cloud, Salesforce flexibility, scalability, network security, and Marketing Cloud, and Oracle Marketing Cloud, in reduced costs. As such, Cloud-enabled order to present the scope of the marketing technologies enable the centralization and union of activities they involve. business-important data and enterprises' adaption to technology-driven changes. In other words, Increased usage of the Internet, and networking Cloud platforms enable optimization of business users and Cloud tools imply the digital content processes through the storing of data, networking, dominance in the company's marketing strategies. analysis and running own applications. Cloud To achieve success, today's marketers should adopt technologies have also influenced marketing, and a Cloud-based marketing concept, as it will be able therefore Cloud marketing has emerged, which is to increase the loyalty of current customers and defined as a set of marketing efforts implemented attract more customers, increase ROI, simplify through online channels. More precisely, Cloud marketing activities' optimization and better marketing is suitable for all industries, allows the positioning of their brand in the market. companies to connect with certified clients via

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