Exam 1

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Selling Concept (starting point, focus, means, ends)

Starting Point: factory Focus: existing products Means: selling and promoting Ends: profits through volume

Marketing Concept (starting point, focus, means, ends)

Starting Point: market Focus: customer needs Means: integrated marketing Ends: profits through customer satisfaction

Survey Research

asking people quesitons about their knowledge, attitudes, preferences, and buying behavior

Attract or Intrude?

attract: create market offerings and messages that engage consumers rather than interrupt them

Marketing Management

choosing target markets and building profitable relationships

Business Portfolio

collection of businesses and products that make up the company

Internal Databases

collections of consumer and market information obtained form data sources within the company network

Choosing a Value Proposition

company must decide how it will differentiate and position itself in the marketplace

Planned Obsolescence

company's causing products to become obsolete before they should usually need replacement

Value Delivery Network

composed of the company, its suppliers, its distributors, and its customers

Marketing Mix

consists of tactical marketing tools blended into an integrated program that actually engages target customers and delivers the intended customer value

Marketing Analytics

consists of the analysis tools, technologies, and processes by which marketers dig out meaningful patters in big data to gain customer insights and gauge marketing performance

Core vs Seconday Beliefs

core beliefs: high degree of persistence (individual freedom, hard work, achievement, success) secondary beliefs: more open to change

Customer Perceived Value

customer's evaluation of a marketing offer relative to those of competing offers

Digital and Social Media Marketing

engaging consumers via their digital devices using digital marketing tools

BCG Growth-Share Matrix

evaluates a company's SBUs in terms of market growth rate and relative market share

Customer Satisfaction

extent to which a product's perceived performance matches a buyer's expectations

Satisfaction

feelings of pleasure or disappointment resulting from comparing a product's perceived performance in relation to expectations

Marketing Environment

forces that affect marketing management's ability to build and maintain successful relationships with target customers

Wants

form taken by human needs when shaped by culture and individual personality

Code of Conduct

formalized rules and standards that describe what the company expects of its employees

Observational Research

gathering primary data by observing relevant people, actions, and situations

Sustainable Marketing Concept

meeting current needs in a way that preserves the rights and options of future generations of consumers and businesses

Microsoft

mission statement

How does Special K increase their share of customers?

offer greater varieties and do the cross-selling thing

Customer Value-Driven Marketing Strategy Ch 1

once a company fully understands its consumers and the marketplace, it must decide which customers it will serve and how it will bring them value

Consumerism

organized movement of citizens and government agencies designed to improve the rights and power of buyers in relation to sellers

Environmentalism

organized movement of concerned citizens, businesses, and government agencies designed to protect and improve people's current and future living environment

Marketing Myopia

paying more attention to the specific products than to the benefits and experiences produced

Growing Share of Customer

portion of the customer's purchasing in their product categories

Marketing in 23 Words

process by which companies engage customers, build strong relationships, and create customer value in order to capture value from customers in return

Downsizing

products of business units that are unprofitable or no longer fit the company's overall strategy

What are the two "camps"?

qualitative and quantitative

Marketing Segmentation

refers to dividing the markets into segments of customers

Target Marketing

refers to which segments to go after

Marketing in 3 Words

satisfying customer needs

Stew Leonard Takeaway

sees $50k when he sees sulking customer because his average customer spends about $100/week, shops 50 weeks a year, for 10 years which is equivalent to a $50k CLV

Sample

segment of the population selected to represent the population as a whole

Experimental Research

selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses

Ethnographic Research

sending trained observers to watch and interact with consumers in their natural environments

Strategic Planning

the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities

Value Proposition

the set of benefits or values it promises to deliver to consumers to satisfy their needs

IKEA's Mission Statement

to create a better everyday life for the many people

What is the ultimate aim of CRM?

to produce high customer equity

MagicBand

touch it to a sensor called a touch point, waterproof, use it for everything

Why did we discuss Frito Lay?

understanding consumer profiles

Mobile Marketing

using mobile channels to stimulate immediate buying, make shopping easier, and enrich the brand experience

Market Offerings (2)

- products, services, informaiton, or experiences - offered to satisfy a need or want

Suppliers (2)

- provide the resources needed by the company to produce its goods nd services - supplier problems seriously affect marketing: supply shortages or delays, labor strikes, price trends of key inputs

Creating Customer Loyalty and Retention (3)

- keeping customers loyal makes good economic sense - customer lifetime value (CLV) - customer defections can be costly

Marketing Management Orientations (5)

- production concept - product concept - selling concept - marketing concept - societal marketing concept

Customer-Centered Measures (3)

- CLV - customer equity - customer engagement

Growth-Share Matrix Categories (4)

- Dog: low relative market share and market growth rate - Cash Cow: high relative market share and low market growth rate - Question Mark: low relative market share and high market growth rate - Star: high relative market share and market growth rate

Four Quadrants of Product/Market Expansion Grid (AKA Ansoff's Matrix

- Market Penetration: existing products and markets; adjust product design, ads, price, distribution - Market Development: existing products and new markets; new target markets (demo, geo) - Product Development: new products and existing markets; new products - Diversification: new products and markets; start or buy business with different market

Customer Relationship Groups (4)

- Strangers: short-term projected loyalty, low potential profitabiliity - Barnacles: long-term projected loyalty, low potential profitability - Butterflies: short-term projected loyalty, high potential profitability - True Friends: long-term projected loyalty, high potential profitability

SWOT Analysis

- Strengths: internal capabilities that may help a company reach its objectives - Weaknesses: internal limitations that may interfere with a company's ability to achieve its objectives - Opportunities: external factors that the company may be able to exploid to its advantage - Threats: current and emerging external factors that may challenge the company's performance

Geographic Shifts (3)

- West and South have grown - more migtation to suburbs and "micropolitan areas" - rapid increase in number of people who "telecommute"

Four A's of the Buyers Perspective

- acceptability (product) - affordability (price - awareness (promotion) - accessability (place)

Marketing's Impact on Other Businesses (3)

- acquisitions of competitors - marketing practices that create barriers to entry - unfair competitive marketing practices

Socially Responsibe Behavior (2)

- actively seek out ways to protect the long-run interests of consumers and the environment - devolop policies, guidelines, and other responses to complex social responsibility issues

Markets (3)

- all actual and potential buyers of a product - sellers and consumers market - customer-managed relationships

Five Functions of Management of Marketing (in order)

- analysis - planning: develop strategic plans -> develop marketing plans - implementation AND organization: carry out the plans - control: measure results -> evaluate results -> take corrective action; then goes back to planning and implementation/organization

Steps in business portfolio planning (2)

- analyze the firm's current business portfolio - develop strategies to shape the future portfolio

Publics (2)

- any group that has an actual or potential interest in or impact on an organizations abiity to achieve its objectives - financial, media, government, citizen action, local, general, internal

Three Key Words of MIS

- assess - develop - use

Five Largest Generational Groups

- baby boomers (wealthiest) - gen x - millennials (most comfy with tech) - gen z - generation alpha

Education Shifts (2)

- better educated - 90% of US pop over age 25 have high school degree and 36% a bachelor's (compared to 66% and 16%)

Standard Marketing Performance Measures (3)

- brand awareness - sales - market share

Customer Generated Marketing (2)

- brand exchanges created by consumers - occurs through uninvited (consumer-to-consumer exchanges) or invited (consumers invited by companies)

Campbells, Tropicana, Ritzs (2)

- brand recognition - marketing research

Questionnaires (2)

- can be administered in person, by phone, by email, or online - closed or open ended questions

Cause-Related Marketing

- companies use cause-related marketing to exercise their social responsibility and build more positive images - primary form of corporate giving - controversy: strategy for selling more rather than a strategy for giving

Actors in the Microenvironment (6)

- company - suppliers - marketing intermediaries - competitors - publics - customers

Sources of Secondary Data (4)

- company's internal database - purchased from outside suppliers - commercial online databases - internet search engines

Marketing Information Systems (MIS) (2)

- consists of people and procedures to assess information needs, develop the needed information, help decision makers use the information - all to generate and validate actionable customer and market insights

Customers (5)

- consumer markets: final consumption - business markets: further processing or production - reseller markets: resell for profit - government markets: public services - international markets: consumers, producers, resellers, and government

Nonprobability Samples (ex) (3)

- convenience sample: the researcher selects the easiest population members from which to obtain information - judgment sample: the researcher uses his or her judgment to selct population members who are good prospects for accurate information - quota sample: researcher finds and interviews a prescribed number of people in each of several categories

The Sustainable Company (2)

- create value for customers through socially, environmentally, and ethically responsible actions - provides the context in which companies can build profitable customer relationships

The Marketing Mix (inside out)

- customer value and relationships - segmentation, targeting, differentiation, positioning - place, product, price, promotion - marketing analysis, planning, implementation, control - marketing intermediaries, competitors, publics, suppliers

Inside Out Management Orientations (3)

- production concept (available/affordable) - product concept (quality/performance/features) - selling concept (large-scaling selling/promo)

Research Instruments (2)

- questionnaires - mechanical instruments

Sustainable Marketing Principles (5)

- customer-centric marketing: viewing and organizing a company's marketing activities from the consumer's POV - customer value marketing: putting most of a company's resources into customer value-building marketing investments - sense-of-mission marketing: defining a company's mission in broad social terms - market with ethics: good ethics are a cornerstone of sustainable marketing - do no harm: avoid harmful actions or omisions by embodying high ethical standards and adhering to all applicable laws and regulations in the choices we make

Customer Value and Satisfaction (3)

- customers form expectations about the value and satisfaction of the market offerings - satisfied customers buy again - dissatisfied customers switch to competitors

What is environmentalism concerned with? (3)

- damage to the ecosystem - loss of recreational areas - increase of health problems

Problems Faced with International Marketing Research (5)

- dealing with diverse markets - finding good secondary data in foreign markets - developing good samples - reaching respondents - handling differences in culture, language, and attitudes toward marketing research

Four Steps in Strategic Planning

- defining the company mission - setting company objectives and goals - designing the business portfolio - planning marketing and other functional strategies

Marketing Research Process (4)

- defining the problem and research objectives - developing the research plan for collecting information - implementing the research plan--collecting and analyzing the data - interpreting and reporting the findings

Actors in the Macroenvironment (6)

- demographic - economic - natural - technological - political - cultural

Setting Company Objectives and Goals (2)

- detailed supporting objectives for each level of management - setting a hierarchy of objectives (business objectives, marketing objectives)

Problems with Growth-Share Matrix (3)

- difficult, time consuming, and costly - difficult to define and measure - provides little advice for future planning

Changing Marketing Landscape (4)

- digital age (social media, big data, AI) - growth of not-for-profit marketing (used by colleges, hospitals, museums, etc) - rapid globalization - sustainable marketing

What two characteristics of sustainable marketing go into strategic marketing planning?

- ethics: individual and group decisions - social responsibility: total effect of marketing decisions on society

Economic Environment (3)

- factors affecting consumer purchasing power and spending: inflation, unemployment, interest rates, growth or recession - changes in consumer spending: buying less and looking for greater value after Great Recession of 2008-09 - differences in income distribution: rich richer, shrinking middle class, poor poorer

Intrutions on Comsumer Privacy (2)

- failure to address privacy issues results in angry, less cooperative consumers and increased government intervention - researchers should ask only for information needed, use information responsibly to provide customer value, and avoid sharing information without permisison

Marketing's Impact on Society as a Whole (3)

- false wants and too much materialism - too few social goods - cultural pollution

Why did we talk about coca cola, mcdonalds, and microsoft? Where are they on the interbrand ratings?

- focus on sustainable marketing and strategic planning - coca cola: 6 mcdonalds: 9 microsoft: 3

Political Environment (2)

- forces that influence or limit various organizations and individuals in a society - laws, government agencies, and pressure groups

Share of Customer is Increased by (3)

- good customer relationship management - offering greater variety to current customers - creating programs to cross-sell and up-sell to existing customers

What can a company do to promote ethics and responsibility? (Eastman ex)

- have a code of conduct - have a number/website to report violations to

Marketing Intermediaries (2)

- help the company to promote, sell, and distribute its products to final buyers - resellers, physical distribution firms, marketing services agencies, financial intermediaries

Marketing's Impact on Individual Consumers (6)

- high prices - deceptive practices - high-pressure selling - shoddy, harmful, or unsafe products - planned and perceived obsolescence - poor service to disadvantaged consumers

Social Critisisms of Marketing (3)

- impact on individual consumers - impact on society as a whole - impact on other businesses

Diversity Shifts (6)

- increasing diversity - 61% non-Hispanic white - 19% Hispanic - 13% Black - 6% Asian American - By 2060 Hispanics 28%, Black 15%, Asian 9%

Cultural Environment (2)

- institutions and other forces that affect a society's basic values, perceptions, and behaviors - persistence of cultural values (core and secondary)

CRM consists of software and analysis tools that (3)

- integrate customer information from all sources - analyze data in depth - apply the results

What are the three ways to develop information? (aka where it can be obtained from)

- internal databases - competitive marketing intelligence - marketing research

The Company (2)

- interrelated groups in a company form the internal environment - departments share the responsibility for understanding customer needs and creating customer value

Marketing Research at P&G (4)

- invests hundreds of millions of dollars in marketing research - did ethnographic research - called it immersion research - febreze and ariel examples

Customer Engagement Marketing (2)

- involves fostering direct, continuous customer involvement in shaping brand conversations, experiences, and community - the key is to find ways to enter consumers' conversations with engaging and relevant brand messages

Major US Legislation Affecting Marketing (8)

- legislation regulating business is intended to protect companies from each other, consumers from unfair business practices, and the interests of society against unrestrained business behavior - Nutrition Labeling and Education Act: requires that food product labels provide detailed nutritional value - Children's Online Privacy Protection Act: prohibits online collection of information from children without parental consend and allows parents to review information collected from their children - Do-Not-Call Implementation Act: collects fees from telemarketers for the enforcement of a Do-Not-Call Registry - CAN-SPAM Act: regulates the distribution and content of unsolicited commercial e-mail - Financial Reform Law: created the Bureau of Consumer Financial Protection, enforces Truth-in-Lending Act, Home Mortgage Disclosure Act, and other laws - Exports Promotion Act: authorizes the Commerce Department to strengthen global markets for US goods, especially goods produced by rural and small and medium businesses - Internet of Things Cybersecurity Improvement Act: increase cybersecurity for Internet of Things devices that connect internet to physical devices

Setting the Right Level of Expectations (2)

- low expectations may fail to attract buyers - high expectations may disappoint buyers

Portfolio Analysis (4)

- management's evaluation of the products and businesses that make up the company - identify the strategic business units (SBUs) - assess SBUs' attractiveness and decide on the level of support SBU deserves - direct resources toward more profitable businesses and phase down or drop its weaker ones

Customer Relationship Management (CRM) (ch 4) (2)

- managing detailed information about individual customers - carefully managing customer touch points to maximize customer loyalty

Competitors (2)

- marketers must gain strategic advantage by positioning products strongly against competitors - no single strategy is best for all companies

Outside In Management Orientations (2)

- marketing concept (needs and wants of customer) - societal marketing concept (needs/wants + society)

Sustainable Marketing Diagram (4)

- marketing concept: current needs of consumers and business - strategic planning concept: current needs of consumers, future needs of business - societal marketing concept: future needs of consumers, current needs of business - sustainable marketing concept: future needs of consumers and business

Customer Value-Driven Marketing Strategy Ch 2

- marketing logic by which the company creates customer value and acheives profirable customer relationships - integrated marketing mix: 4 P's - activities for best marketing strategy and mix: marketing analysis, planning, implementation, organization, and control

Sustainable Marketing (3)

- meeting present needs while preserving the ability of future generations to meet their needs - requires consumers, companies, public policy makers, and others to work together - calls for socially and environmentally and responsible actions

How is the American family changing?

- more are divorcing/separating, marry later, or marrying without having children - more have never been married (23-33%) - 21% married, same-sex couples raising children (up by 75%) - more working women

Five Core Customer and Marketplace Concepts

- needs, wants, and demands - market offerings - value and satisfaction - exchanges and relationships - markets

Marketing ROI (3)

- net return from a marketing investment devided by the costs of the marketing investment - assessed using standard marketing performance measures and customer-centered measures - hard to measure

Technological Environment (5)

- new technologies create new markets and opportunities - digital technology - Internet of Things (IoT) has created a brave new world of marketing - radio-frequency identification (RFID) tracks products - government agencies investigate and ban potentially unsafe products

Is it easy to gain consumer insights? How do we do it and why?

- no -

Techniques of Competitive Marketing Intelligence (5)

- observing consumers first hand - quizzing the company's own employees - benchmarking competitors' products - conducting online research - monitoring social media buzz

Social Media Marketing (2)

- online social media provide a digital home for people to connect and share important information and life's moments - social media offers an ideal platform for real-time marketing and engagement

Mechanical Instruments (3)

- people meters - checkout scanners - neuromarketing

Pyramid of Responsibilities (top to bottom)

- philanthropic: be a good corporate citizen; contribute resources to the community, improve quality of life - ethical: be ethical; obligation to do what is right, just, and fair; avoid harm - legal: obey the law; law is society's codification of right and wrong; play by the rules of the game - economic: be profitable; theh foundation upon which all others rest

Natural Environment (3)

- physical environment and natural resources needed as inputs by marketers or affected by marketing activities - environmental sustainability concerns have grown steadily over the past three decades - trends: shortages of raw materials, increased pollution, increased government intervention

Environmental Sustainability and Sustainable Value Chart (4)

- pollution preventing: eliminating or reducing waste before it is created; internal; today greening - new clean technology: devoloping new sets of environmental skills and capabilities; internal; tomorrow beyond greening - product stewardship: minimizing environmental impact throughout the entire product life cycle; external; today greening - sustainability vision: devoloping a strategy framework for creating sustainable value; external; tomorrow beyond greening

Major Marketing Mix Tools (Four Ps of marketing)

- product - price - place - promotion

Four P's of Marketing Mix

- product: variety, quality, design, features, brand name, packaging, services - price: list price, discounts, allownces, payment period, credit terms - promotion: advertising, personal selling, sales promotion, public relations, direct and digital - place: supply chains, channel coverage, channel management, logistics, transportation

Responding to the Marketing Environment (3)

- reactive firms passively accept the marketing environment and do not try to change it - proactive firms develop strategies to change the environment - proactive firms take aggressive actions to affect the publics and forces in their marketing environment

Four Key Decisions when Designing a Plan for Primary Data Collection

- research approaches - contact methods - sampling plan - research instruments

Societal Classification of Products (4)

- salutary products: high long-run consumer benefit, low immediate satisfaction - desirable products: high long-run consumer benefit and immediate satisfaction - deficient products: low long-run consumer benefit and immediate satisfaction - pleasing products: low long-run consumer benefit, high immediate satisfaction

Decisions Required for Sampling Design (3)

- sampling unit: people to be studied - sample size: number of people to be studied - sampling procedure: method of choosing the people to be studied

Probability Sames (ex) (3)

- simple random sample: every member of the population has a known and equal chance of selection - stratified random sample: population is divided into mutually exclusive groups and random samples are drawn from each group - cluster (area) sample: population is divided into mutually exclusive groups and the researcher draws a sample of the groups to interview

Socially Responsible Behavior (3)

- socially responsible companies actively seek out ways to protect the long-run interests of consumers and the environment - companies develop policies, guidelines, and other responses to complex social responsibility issues - brand activism

Three Considerations Underlying the Societal Marketing Concept

- society (human welfare) - company (profits) - consumers (want satisfaction)

Mission Statement (4)

- statement of the organization's purpose - emphasize the company's strengths - focus on customers and the customer experience - market oriented

Needs (4)

- states of felt deprivation - physical: food, clothing, warmth, and safety - social: belonging and affection - individual: knowledge and self-expression

Demographic Environment (2)

- study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics - marketers analyze geographic population shifts, changing age and family structures, educational characteristics, population diversity

Unilever (4)

- sustainable living report hub - changing business to be more sustainable - certification vs self verification - partnership with suppliers based on responsible sourcing

Competitive Marketing Intelligence (5)

- systematic monitoring, collection, and analysis of information about consumers, competitors, and developments in the marketing environment - offers insights about consumer opinions and their association with the brand - provides early warnings of competitor strategies and potential competitive strengths and weaknesses - helps firms to protect their own information - raises ethical issues

Patagonia "conscious consumption" (3)

- telling consumers to buy less - matches their reason for being "to save our planet" - balances purpose against profits

Which steps in the marketing process create value FOR customers and build customer relationships? Capture value FROM customers in return?

- the first four - the last one

Which steps in strategic planning are corporate level? Business unit, product, and market level?

- the first three steps - the last step

Responsibility of Managers (4)

- think carefully about the research objectives - formulate questions in advance - recognize the biases introduced by smaller samples and less skilled researchers - conduct the research systematically

Traditional Buyer's Rights

- to buy a product that is offered for sale - to expect the product to be safe - to expect the product to perform as claimed

Traditional Seller's Rights (5)

- to introduce any product in any size and style with proper warnings and controls, if necessary - to charge any price for the product without any discrimination - to spend any amount to promote the product is competing fairly - to use any product message that is not misleading or dishonest - to use buying incentive programs that are not unfair or misleading

Building Customer Equity (4)

- total combined customer lifetime values of all of the company's customers - measures the future value of the company's customer base - increases when the loyalty of the firm's profitable customers increases - better measure of a firm's performance than current sales or market share

Transactional Marketing vs Relationship Marketing

- transactional: discrete transactions; acquire - relationship: relational exchange; acquire and retain (bonds/attachments, utilitarian, affective, symbolic, obligatory)

Marketing Implementation and Organization (2)

- turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives - addresses the who, where, when, and how of the marketing activities

Five Steps of the Marketing Process

- understand the marketplace and customer needs and wants - design a customer value-driven marketing strategy - construct an integrated marketing program that delivers superior value - engage customers, build profitable relationships, and create customer delight - capture value from customers to create profits and customer equity

Approaches used for Marketing Research (3)

- use own research departments - hire outside research specialists - purchase data collected by outside firms

Descriptive Research (2)

- used to better describe the market potential for a product or the demographics and attitudes of consumers - best to use survey approach

Exploratory Research (3)

- used to gather preliminary information - helps to define problems and suggest hypotheses - best to use observational approach

Causal Research (2)

- used to test hypotheses about cause-and-effect relaitonships - best to use experimental approach

How have secondary values shifted? (6)

- views of themselves: people vary in their emphasis on serving themselves vs serving others - views of others: more "cocooning" - views of organizations: decline of loyalty toward companies - views of society: patriots defend it, reformers want to change it, malcontents want to leave it - views of nature: some feel ruled by it, in harmony with it, or seek to master it - views of the universe: renewed interest in spirituality and development of more permanent values, family, community, earth, faith

US Population

332 mil

World Population

7.9 bil

Expected Population in 2030

8.6 billion

"Other" CEO

Cheif Compliance and Ethics Officer

MIS Figure

Top of Chart: Marketing Managers and other information users CONNECTS TO: Assessing information needs AND Analyzing and using information CONNECTS TO: Internal databases, Marketing intelligence, Marketing research; ALL PART OF DEVELOPING NEEDED INFORMATION

Starkville Restaurant

about micro and macroenvironments

Microenvironment

actors close to the company that affect its ability to serve its customers

Corporate Social Responsibility

an organization's obligation to maximize its positive impact and minimize its negative impact on society

Environmental Sustainability

generating profits while helping protect the environment

Demands

human wants that are backed by a buying power

Primary Data

information collected for a specific purpose at hand

Secondary Data

information that already exists and was collected for another purpose

What needs to be balanced when assessing marketing information needs?

informations users would like to have against what they really need vs what is feasible to offer (like vs need)

Macroenvironment

larger societal forces that affect the microenvironment

Value Chain

made up of company internal departments

Marketing Research

systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization

Probability Samples (def)

technique in which every element in the population being studied has a known chance of being selected

Nonprobability Samples (def)

technique in which there is no way to calculate the likelihood that a specific element of the population will be chosen

Big Data

the huge and complex data sets generated by today's sophisticated information generation, collection, storage, and analysis technologies

Customer Relationship Management (CRM) (ch 1)

the overall process of building and maintain profitable customer relationships by delivery superior customer value and satisfaction

Customer Lifetime Value (CLV)

value of the entire stream of purchases a customer makes over a lifetime of patronage

Partner Relationship Management

working with others inside and outside the company to jointly engage and bring more value to their customers


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