Marketing Communication Exam

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2 extremes for global marketing strategies

Global companies use STANDARDIZED global marketing, essentially using the same marketing strategy approaches and marketing mix worldwide Adaptive global marketing

Most international marketers suggest that companies should seek a balance between

Globally standardized strategies and local adapted marketing mix tactics

Personal selling disadvantages

High cost Labor intensive Limited "reach"

Direct marketing is ___, allowing buyers to create exactly the configuration of info, products, or services buyers desire and then order them on the spot

Immediate and interactive

Second major decision in international marketing

Deciding on internationalization - motives: global competition at home, stagnant local market, follow major customer, sell inventory, continue production - familiarity w/ foreign environments (regulations!) - company's preparedness: managers/staff, past experiences, gov support

6 major sales force management steps

Designing sales force strategy and structure Recruiting and selecting salespeople Training salespeople Compensating salespeople Supervising and motivating salespeople Evaluating salespeople

True or false: traditional direct marketing forms

Direct-mail marketing is rarely used today b/c it had been replaced by e-mail - false Marketers use both outbound and inbound telemarketing - true - outbound to sell directly to consumers and businesses - inbound toll-free numbers to receive orders from tv and print ads, direct mail, or catalogs

As an element of the promotion​ mix, the sales force is​ ________ and carrying out such activities as​ prospecting, communicating, selling and​ servicing, and information gathering.

Effective in achieving certain marketing objectives

Marketers tend to underuse PR or use it as an afterthought. PR has the power to ___ and ___

Engage consumers Make them a part of the brand story and it's telling

Online shopping

Even in small towns, not for city people only 73% of rural people buy online 30% of them are members of amazon prime Expensive to deliver $4 fee for delivery to rural address And, Denise of retail in little town America

Factors shaping the promotion methods 2) strategy

- "push"- to resellers, who "push" product (B2B) - "pull"- to customers, create demand, pull product downstream (B2C) - hybrid - push and pull

Factors shaping the promotion methods 1) nature of the method

- advertising: massive reach, can be repeated, attractive BUT costly & no interaction - PS: personable, LT relations, BUT MOST expensive - sales promotion: include to buy, BUT short lived - PR: believable, BUT underestimated - digital: target to segment, interactive, growing

6 major decisions in international marketing

1) evaluating the global environment - international trade system - economic environment/market attractiveness - political/legal environment - cultural environment 2) deciding on internationalization 3) which markets to go? - evaluation of countries - company's capacity 4) market entry strategy - exporting - joint venture - direct investment 5) marketing program, the 4Ps 6) organization

Marketers use mobile marketing to engage customers anywhere, anytime during the ___

Buying and relationship-building processes

Personal selling advantages

Customer attention Customized message/service LT relation Interactive Close the sale (you get paid)

What are the 5 promotion mix tools used by marketers to communicate customer value?

Advertising PR Personal selling Sales promotion Direct and digital marketing These tools are used to engage consumers, communicate customer value persuasively, and build customer relationships

Online/digital domains

B2C: business to consumer (e-commerce) - most common B2B: business to business C2C: consumer to consumer C2B: consumer to business - product info, place orders, complaints Blogs: > 30m Social media - online communities. Cos use them - low cost customer engagement - measurable - risk: user/consumer controlled. Bad info travels fast

Marketers should work to measure the returns on their sales promotion investments What is the most common time to perform the evaluation

Before, during and after a promotion

For sellers, direct and digital marketing are powerful tools for building ___ and ___

Customer engagement Close, personalized, interactive customer relationships

Direct marketing

Digital (web) and non-digital (catalogs, mail, tel., etc) a) independent (Amazon, netflix) b) or (mostly) part of multi-channel (office depot) % of retail sales growing faster

Spurred by the surge in Internet usage and​ buying, and by rapid advances in​ ________, ________ has undergone a dramatic transformation.

Digital tech and direct marketing

Firms seeking immediate response from targeted individual consumers and consumer communities use​ ______________________ marketing tools to engage consumers and cultivate relationships with them.

Direct and digital

A company may use the promotion mix, also called its marketing communications mix, to ___

Engage customers Persuasively communicate customer value Build customer relationships

With companies becoming more​ market-oriented, the sales force plays a key role in​ ________ and​ __________________________.

Engaging customers Developing and managing profitable customer relationships

First major decision in international marketing

Evaluating the global environment A) international trade system - restrictions - tariff, quota, non-tariffs product regulations - institutions - GATT in 1947: reduce tariffs - WTO in 1994: liberalization and enforcement - economic communities/free trade agreement - EU- 27 (w/out UK) members, half billion consumers - NAFTA in 1994, increased US exports by 140% - re-negotiated 2018: USMCA ratification B) economic environment/market attractiveness - economies (industrial structure) - subsistence - product and consume agriculture - raw material exporters (Saudi Arabia's oil) - industrializing- 20% manufacturing, rising middle class - industrial- major producers, investors and traders - income distribution - depends on Econ development (more common in Econ environment) C) political/legal environment - attitude toward foreign MNCs - stability- for long term investment - monetary controls- for hard currencies - growth of counter-trade: non-cash, barter - US: 400,000 cos do non-cash trade - >20% of world trade is counter trade D) cultural environment - impact of culture on marketing - cannot disregard - sometimes must adapt (Disney in Europe) - globalization and national culture- Americanization!

PR

Purpose: company/brand image, region (VisitPA.com), social cause, etc. Tools: community events (Pittsburgh race), press release, co. "Materials/things", social media, blog, lobby Sometimes similar to advertising Appeal to public - vulnerability PR (dominos pizza)

Direct and digital marketing

involves engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships

Viral marketing

the digital version of word-of-mouth marketing: videos, ads, and other marketing content that is so infectious that customers will seek it out or pass it along to friends

Important decisions for strategy

1) objective - inform: during product introduction - persuade: when market is competitive - remind: maturity: retain/sustain loyalty 2) budget - not easy task. Methods: - affordability- small business, BUT under-spending - % of sales- simple, BUT promotion is source of sales, not result! - competitive parity- disregards CO's niche - objective-and-task - depends on objective, difficult (cause-effect)

How do companies use online marketing?

1. Create website - corporate/branded site: info - marketing site: info, sell 2. Ads/promotions - search ads. Most web shopping starts with search 3. Networks - existing networks - 77% claim found customers on Facebook - start own network (Nike) 4. Email-fast growing > 92% of cos. - target marketing; risk spam - high ROI: $40 to $1 - best in digital marketing 5. Blogs - over 40% of cos blog - 92% claim getting customers

Managing the sales force

1. Structure - depends on product line/mix - geography/territory - sales rep per area: fixed responsibility, less travel cost (sporting goods, real estate) - product- SR's product competency; many reps per customer (product reps at hospital) - customer- for large customers (auto producer or WM - dedicated customer relation 2. Size/composition of sales force- depends on account - outside: in the field - service existing accounts and build new ones - inside: by telephone $ internet - continuous contact - support field reps and offer tech support - some customers prefer electronic communication (less time consuming) - growing in importance (EDI) - team: for complex accounts (P&G w/ CVS) - drawbacks: SR's evaluation and reward

Which of the following statements is true regarding the promotion mix?

Advertising is a personal form of marketing communication - false Personal selling is not used to engage customers - false Direct and digital marketing cannot be used to target individual consumers - false Sales promotions are long- term incentives to encourage the purchase or sale of a product or service - false The entire marketing mix must be coordinated for greatest impact - true - although the promotion mix is the company's primary engagement and communications activity, the entire marketing mix-promotion and product, price and place-must be coordinated for greatest impact

Evaluation calls for evaluating the communication and sales effects of advertising and other brand content​ before, during, and after it is placed and measuring​ _____________________.

Advertising return on investment

Roles of sales rep

Advocate of employer- negotiate on behalf of seller Advocate of client Work w/ client to solve problem and build relation - directly w/ client for industrial (non-consumer) products (medical equipment) - directly w/ client for household services (real estate) - w/ re-sellers for consumer products (Nike, Heinz, Kraft) possible conflict w/ marketing: PS typically represent customers first, marketing people focus on product, brand, 4Ps

Advertisinf strategy: the message

Capture attention and engage, believable, beneficial Today, it is entertaining, advertainment

What are the 3 major factors changing the face of today's marketing communications?

Changes in consumers Changes in marketing strategies Sweeping changes in digital tech

Integrated marketing communications must deliver company and brand messages that are ___

Clear, consistent, and compelling

Depending on the type of promotion, a marketer develops and implemented the sales promotion program by using 3 key promotion tools

Consumer promotion Trade promotion Business promotion

Sales promotion campaigns call for setting sales promotion objectives. In general. Sales promotion should be ___

Consumer relationship building

Social media has many pluses, but on the down side, ___. This makes social media difficult for marketers to control

Consumers largely control social media content On the plus side, social media is targeted and personal, interactive, immediate and timely, and cost effective

Benefit of direct and digital marketing for buyers

Convenient, easy and private

The internet and digital age have given marketers a whole new way to ___

Create customer value Engage customers Build customer relationships The internet and digital age have fundamentally changed customers' notions of convenience, speed, price, product info, service and brand interactions

Although the fast-growing digital marketing tools have grabbed most of the headlines lately, ___ are very much alive and still heavily used

Traditional direct marketing tools

Closing a sale with a particular customer is a​ short-term ________​ orientation, but the selling process must also take a​ ________ orientation and look at the long term.

Transactional Relationship The steps in the selling process are transaction oriented - their aim is to help salespeople close a specific sale w/ a customer But in most cases, the company is not simply seeking a sale. Rather, it wants to engage the customer over the long haul in a mutually profitable relationship

Digital media to seller

Use online communities to identify trends, prospects Online dialogue w/ buyer throughout process Use multimedia (chat, conferencing, video)

Digital selling

Using online/Social media technologies

___ selling requires listening to customers, understanding their needs, and carefully coordinating the whole company's efforts to create lasting relationships based on customer value

Value

Which of the following statements is true regarding social media marketing?

Very few companies use social media for marketing - false Social media can be used for real-time marketing - true - due to the rapid growth in social media usage, there has been a surge in real-ziti me marketing, allowing marketers to create and join consumer conversations around situations and events as they occur Social media cannot be targeted or personalized - false There are very few niche online social media networks - false Social media is not interactive - false

Third major decision in international marketing

Which markets to go? - evaluation of countries: geographic, demographic, economic, political, legal, ease of doing business - company's capacity- depends on SWOT (export or licensing)

True or false: global marketing environment today

A free trade zone is an area where products are trade free - false Since the world has become a global community, culture has become an unimportant consideration when conducting business in foreign countries - false Most nations are very similar in their political-legal environments - false Monetary regulations is no longer an important consideration in deciding whether to do business in a particular country - false The world trade organization (WTO) helps promote trade between nations - true - by reducing tariffs and other international trade barriers - also imposes international trade sanctions and mediates global trade disputes

What do marketers need to adjust when using an adaptive global marketing strategy

Adjust the marketing strategy and mix to each target market

A firm normally gets into international marketing by simply shipping out its goods. If it's international sales expand, the company will establish ___ with a sales manager and a few assistants

An export department

Each company must decide whether it wants to go abroad and consider the potential risks and benefits. Key areas of assessment include ___, ___, and ___ environments

Cultural Political-legal Economic

The biggest involvement in a foreign market comes through​ ________ of the development of​ foreign-based assembly or manufacturing facilities.

Direct investment

The market entry strategy that has the greatest amount of commitment, risk, control, and profit potential

Direct investment The main disadvantage of direct investment is that the firm faces many risks, such as restricted or devalued currencies, falling markets, or gov changes In some cases, a firm has no choice but to accept these risks if it wants to operate in the host country Direct investment also entails the greatest commitment, control, and profit potential

Most companies ___ when first deciding on a global marketing organization

Establish an export department And graduate to an international division

In ___ the company enters a foreign market by sending and selling products through international marketing intermediaries (indirect exporting) or the company's own department, branch, or sales representatives or agents (direct exporting)

Exporting

The simplest way to enter a foreign market is through ________.

Exporting

3 approaches to entering the international market

Exporting Joint venturing Direct investment

Traditional direct marketing tools

Face-to-face selling Direct mail marketing Catalog marketing Telemarketing Direct-response tv marketing Kiosk marketing

3 alternative ways an international division's operating units can be organized

Geographical organizations World product groups International subsidiaries

Which of the following statements regarding sales promotions is correct?

In the current economy, consumers have become more deal oriented - true - consumers are demanding lower prices and better deals. Sales promotion can help attract today's more thrift-oriented consumers Sales promotions are offered only to consumers - false Sales promotions offer buyers long-term incentives to purchase a good or service - false The use of sales promotions has declined in recent years - false Sales promotions are not used by non-for-profit organizations - false

Digital marketing

Increase internet use: most people, around 88% US Types of online marketers: (online only) - content sites (Wikipedia) - E-tailer (Amazon) - portals (yahoo) - transaction (craigslist) In store and online - most, integrated marketing, more successful than online only Problem: abandoned "shopping cart" w/out completing purchase, 73% of online sales - low/non profit

___________ are the 2 economic factors that reflect the country's attractiveness as a market

Industrial structure and income distribution The international market must study each country's economy

Digital media to the buyer

Initiate and complete 60% of process w/out rep More control of process Get knowledge about seller, products, competitors Other buyer's feedback, reviews, advice

To deliver a clear and compelling message, each tool in the promotion mix must be carefully coordinated under the concept of ___

Integrated marketing communications

To prevent creating a communications hodgepodge, companies are adopting the concept of ___

Integrated marketing communications Guided by overall IMC strategy, the company works out the roles that the various promotional tools will play and the extent to which each will be used

Personal selling can be very effective in complex selling situations b/c it involves ___ interactions and engagement between salespeople and individual customers

Interpersonal Personal selling is the interpersonal arm of the promotion mix Salespeople can probe customers to learn more about problems, adjust the marketing offer, and fit each presentation to a customer's special needs

What is the toughest public policy issue now confronting the direct marketing industry ?

Invasion of privacy

Advertising strategy: the media

Issues: - reach (% people exposed) - frequency - impact (goal) Types: - tv, print, mail, outdoor, internet/digital (google search) - growth of "alternatives" Timing: all year, seasonal, time of week/day, pulsing

Which of the following statements about PR is correct?

It is difficult to integrate PR into social media - false PR is not used to engage consumers - false The lines between advertising and PR are becoming more blurred - true The impact of PR on public awareness comes at a much higher cost that advertising - false PR is used only to promote products - false

For most companies, digital and social media marketing will remain ___ to the marketplace that works alongside other approaches in a ___

Just one important approach Fully integrated marketing mix

Forms of direct marketing

Mail - generates 30% of DM - all kinds of products/services, including charities - tangible, personalized, high ROI (12:1) relatively low cost Catalogs - very popular - attractive, emotional connection w/ customers - motivate subsequent online purchases Telemarketing/telephone - outbound (to customers), inbound (from customers) - 15% of DM 65% of telemarketing in B2B - do not call legislation Direct response tv advertising & infomercials - tv ad w/ phone # or web - track viewers Home shopping channels - used entirely to sell (QVC) - sales: double amazon, prominent products, retailtainment Kiosks - product info and ordering In stores/hotels/ airports Mobile devices - in us: 77% smartphones (cell 95%) - for shopping: product info, price comparison - risk: ad-weary customers

The sales force sells products by engaging​ customers, presenting its​ offerings, answering​ objections, negotiating prices and​ terms, closing​ sales, servicing​ accounts, and​ ________.

Maintaining account relationships

Fourth major decision in international marketing

Market entry strategy 1. Exporting - indirect exporting- intermediaries (*first strategy*) - direct - export department on foreign distributors - more revenue, greater potential 2. Joint venture: contracting or joint ownership - contracting - licensing - license in return for royalties (coke) - less investment, but less control - contract manufacturing (Peer1 Imports) - management contracting (Hilton Hotels) - joint ownership- partnering w/ foreign (local) partner 3. Direct investment - own foreign subsidiaries; highest involvement - full profits, control, but - risks, conflict, expensive, currency risk

When designing global ___ strategies, companies must understand how culture affects each of its world markets, and how their strategies affect local cultures

Marketing

An international division's corporate staff consists of:

Marketing Manufacturing Research Finance Planning Personnel specialists

Fifth major decision in international marketing

Marketing program, the 4Ps - standardize: efficient/low cost, convergence - customize/adapt to local culture (McDonalds in France, 2nd most profitable market****) - Product: extension (black and decker), adapt (no beef in India) - promotion: culture sensitive - adapt communication - price: international costs increase price. Dumping: less than home price - distribution: between and w/in nations. Major variation in infrastructure

___ must be closely coordinated for maximum campaign effectiveness

Message decisions and media decisions These 2 steps go hand-in-hand in achieving success

Which form of direct and digital marketing do companies use to stimulate immediate​ buying, make shopping​ easier, enrich the brand​ experience, or all of​ these?

Mobile marketing

As marketers adopt richer but​ _____________________ to reach their diverse​ markets, they risk creating a communications hodgepodge for consumers.

More fragmented media and promotion mixes

Direct marketers know that, if left unattended, direct marketing abuses will lead to increasingly negative consumer attitudes, lower response and engagement rates, and calls for ___

More restrictive state and federal legislation

The new digital and social media have given birth to a​ _________________________.

More targeted, social, and engaging marketing communications model

The ___ are providing salespeople with powerful tools for identifying and learning about prospects, engaging customers, creating customer value, closing sales, and nurturing customer relationships

New digital tech

Which of the following statements is correct regarding marketing communications today?

New media formats have allowed marketers to reach smaller communities of consumers in more engaging ways - true (ex. Some programs, ads, and videos are being produced only for online viewing) Consumers have changed very little in the past 50 years - false Marketers are shifting toward mass marketing communication strategies - false Digital tech have not yet had an impact on marketing communications - false Tv advertising is growing rapidly - false

Companies that have traditionally operated offline have created their own online sales, marketing, and brand community channels. In fact, ___ retailing companies are having as much online success as their online-only competitors

Omni-channel

The concern about ___ is an area where consumers fear that unscrupulous snoopers will eavesdrop on their online transactions and social media postings, picking up personal info or intercepting credit and debit card numbers

Online and digital security

Ultimately, ___ tech are helping to make sales force more efficient, cost effective and productive

Online, mobile, and social media

Sixth major decision in international marketing

Organization - initially: export department - international division - subsidiaries - autonomous but part of the MNC - global corporation - geocentric (Microsoft)

In developing advertising strategies, marketers must make decisions regarding ___

Organizing the advertising function Adaptation to international markets

The firm's PR should be blended smoothly with other promotion activities w/in the company's ____

Overall integrated marketing communications effort

Which of the following statements about personal selling is correct?

Personal selling is a fairly new profession - false The role of personal selling is very consistent from company to company - false Salespeople sell; they do not have a role in creating value for the customer - false Many customers are unable to distinguish the salesperson from the company - true - to many customer, the salesperson is the company- the only tangible manifestation of the company that they see The sales force should work separately from other marketing functions - false

Marketing promotion also includes:

Personal selling- interpersonal relationship w/ customer Sales promotion- short term inducements to buy

A company wanting to do international business should consider factors in the​ ________________ environment such as the​ country's attitudes toward international​ buying, government​ bureaucracy, political​ stability, and monetary regulations

Political-legal

Direct marketing benefits to seller

Potential low cost Global reach Targeting and engaging Customized product (Dell)

Functions of PR

Press agency Product publicity Public affairs Lobbying Investor relations Development

Personal selling multiple step process

Prospecting and qualifying Preapproach Approach Presentation and demonstration Handling objections Closing Follow up

What is the first step in the personal selling process?

Prospecting during which sales people identify qualified potential customers

Personal selling process

Prospecting/qualifying - identifying new prospects (referrals, internet, cold call) Pre-approach- research client, products, current supplier, barriers Approach- meet for the first time, begin the relation Presentation and demonstration- solutions, listen to customer, efficient presentation - do not: aggression, unpreparedness, deceit, tardiness Objections- questions, clarification -> persuasion Closing the sale- agreement, inducements, writing order Follow up- client satisfaction, installation, servicing CRM- relations not transactions, client's on-going needs

Companies use ___ to build good relations with consumers, investors, the media, and their communities

Public relations

Promotional tools used to attract consumers

Rebates Coupons Price packs Samples

marketing communication to promote and protect product and brand sustained communication & engagement with target market - protect against competition/rivalry methods: advertising, sales promotion, personal selling, PR, direct and digital marketing

Recent changes: - less broadcasting, more narrowcasting - mass marketing -> segment/target marketing - IT: consumers are better informed - new media - reach and engage smaller targets - lower TV popularity (except for cable, sports, Spanish, y'all TV) - ^ internet, interactive and mobile - best: integrated (all channels) MC

Human resource management

Recruiting & selecting: important - 30% of SRs generate 60% of sales - qualifications: education, motivation, discipline, personality Selection methods: interviews, exams, simulations, personality, presentation skill, etc. Training - costly, but worthwhile - objectives: product, customer relation, PS process, etc. - E-learning (less costly)- web simulation Compensation- mix (fixed 60 + %, variable 30 + %) - recently more fixed- reduce quick-sale, emphasize CRM Supervision- electronic call plans: weekly/monthly (customers, times, tasks, etc.) A) time management- 30% administrative, 11% selling, 15% travel, etc. b) motivation- quotas, company support, promotion C) evaluation- for reward and feedback - many methods - client feedback is important

Factors shaping the promotion methods 4) evaluate effectiveness and ROI

Sales and profits- difficult to measure. 76% do not measure Effects: customer survey, attitudes Additional strategy decisions: organizing (in house or external agency), and international adaption International advertising- standardizing is efficient, adapting is necessary

After sales promotion campaign objectives are​ set, the next steps are​ __________________, and then​ __________________________.

Selecting tools Developing and implementing the sales promotion program

In considering when and how to use product PR, the best thing management should do is ___

Set PR objectives Choose the PR messages and vehicles Implement the PR plan Evaluate the results

Advertisers should first ___ to determine whether the advertising is supposed to inform, persuade, or remind buyers

Set clear objectives

What are the 4 important decisions made when developing an advertising program in order?

Setting objectives Setting the budget Developing strategy Evaluating effectiveness

Sales promotion

Short term incentives to consumers, resellers Growth- 60% marketing & for consumers Reasons: pressure to sell, competition, low impact of advertising, consumer price/value minded Objectives- consumers (short term buy) - resellers (endorse & shelf space) Methods: - to consumers- print or digital coupons, samples (most effective/expensive), price packs, free shipping, reward cards, rebates - to resellers- discounts, free supplies, trade shows, conventions, contests, gifts - important decisions: size of incentive, duration, method of delivery, and ROI evaluation

Advertising strategy: appeal/execution

Slice of life- "typical/normal" people Lifestyle- fits lifestyle (healthy living) Musical or personality- songs, celebrity endorsement Expertise or evidence (scientific, testimonial)

The fastest-growing sales trend is the explosion in ___ , which is using online, mobile, and social media selling

Social selling New digital sales force tech are creating exciting new avenues for connecting with and engaging customers in the digital and social media age

Strategies used to adapt product strategies to a global marker

Straight product extension Product adaptation Product innovation

Strong relationships with the salesperson will result in ___

Strong relationships with the company and it's products

4 sales force structures that companies use in sales force design are ___

Territorial Product Customer Complex

adapted global marketing

The company adjusts the marketing strategy and mix to each target market, bearing more costs but hoping for a larger market share and return

Factors shaping the promotion methods 3) advertising strategy - message and media

The message - capture attention and engage, BELIEVABLE, BENEFICIAL - today, it is entertaining, ADVERTAINMENT Appeal/execution - slice of life: "typical/normal" people - lifestyle: fits lifestyle (healthy living) - musical or personality: songs, celebrity endorsement - expertise or evidence (scientific, testimonial) New consumer generated messages The media - issues: reach (% of people exposed) Frequency Impact (goal) - types: TV, print, mail, outdoor, internet/digital (google search) - growth of "alternatives" - timing: all year, seasonal, time of week/day, pulsing

International market: extent of globalization

There are >60,000 MNCs: larger than country GDPs 8,000 US MNCs w/ 35m. Employees (FedEx, KFC, Boeing) 1/3 of world GDP is international Growth of international trade = 2 times GDP growth Advantages: - product and source diversification - growth: revenue & large scale efficiencies - a good source for a company's strength - new opportunities - global competitiveness

Marketers can engage in social media in two ways:

They can use existing social media or they can set up their own

main forms of online advertising

display ads and search-related ads

personal selling

done by all organizations past - stereotype - status Present - competent, account manager, educated, customer focused Important - more than advertising (in complex situations)

Joint venturing

joining with foreign companies to produce or market products or services Differs from exporting in that the company joins with a host country to sell or market abroad


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