The Companys Marketing Efforts The External Sociological Influences Marketing Essay

This chapter focuses on a reappraisal of literature sing trade names, trade name equity, stigmatization and the procedure for constructing trade name equity. It besides discusses the motor rhythm / two industry construction and kineticss, major market participants and makers. The beginning of all the treatment in this chapter is secondary informations from research articles, books and web mentions.

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What is Brand?

A trade name is a name or symbol used to place the beginning of the product/service. A trade name name distinguishes a company ‘s peculiar merchandise or service from viing products/services in the market place. A trade name could be a symbol, grade, sentence, name, colour or a combination of all these things. ( Michael J. Etzel, 2007 )

If a trade name name creates a positive connexion, association or sentiment among its mark clients so it is said that the corporation has a trade name equity. Some illustrations of companies holding a strong trade name equity are Microsoft, Coca-cola, Pepsi and Nokia. What comes in our head when we think of the above mentioned trade name names? Every individual has a perceptual experience that the above mentioned trade names are symbols of quality and flawlessness. This is because these trade names have created a positive association or image of trade name in the head of mark clients and therefore these trade names have a strong trade name equity. ( Michael J. Etzel, 2007 )

A trade name can be considered as a promise of quality, public presentation, monetary value and service by a company to its clients. It other words, trade name is non merely a name but it is broader than that. A trade name is a committedness by an organisation to present superior public presentation, quality and service to its clients relative to rivals. A trade name is a promise to present value to aim clients. To be a feasible concern, coorporations have to develop strong trade name names otherwise their ego will be perished in the dynamic concern environment. The creative activity of a strong trade name is something the company is traveling to hold to perpetrate to, in order to do it work. ( Michael J. Etzel, 2007 ; Best, 2008 ; James C. Anderson, 2003 )

Power of Trade names

Power of trade names comes from two positions: Customer and Company. A trade name has power if the clients perceive that the trade name provides value and significance. If a trade name has power from clients ‘ position, so it enjoys a big figure of benefits in the signifier of knowing repetition purchase, clients ‘ recommendations to others and low selling channels costs. It is of import to for trade names to hold power from clients ‘ position because these yearss clients live a feverish and busy life and people have to do a batch of of import picks in their day-to-day life. A trade name holding a power from clients ‘ position wins the conflict of competition because it saves a batch of clients ‘ clip which is spent in hunt for merchandises and besides enjoys long-run fiscal and non-financial returns. A strong trade name power enables a merchandise to do trade name extensions in the signifier of flanker trade names which so serves the clients at an drawn-out degree and therefore construct more trust and positive associations with the mark clients. ( Barbara Loken, 2010 )

The other position of trade name power is company attempts. It is true that trade name do hold personalities. Brand is able to self-express itself. The chief power of the trade name depends on efficient merchandise positioning scheme. Four elements of marketing mix merchandise, monetary value, topographic point and publicity play a really of import function to implement a merchandise ‘s placement scheme. From company ‘s position, if a trade name is expeditiously positioned in the heads of mark clients it becomes a power of the trade name and besides a sustainable competitory advantage prima towards long-run fiscal and non-financial returns for the company. This power of trade name can be easy translated into trade name equity and enables an organisation to bear down monetary value premiums on its merchandises relative to competition. Besides it builds more trust and positive associations with the mark clients. ( Best, 2008 )

It is of import to observe that trade names which are powerful from both positions build client trueness. It becomes easy for corporations to place its trade name as superior relation to competition in the market and it besides becomes easy for clients to buy the merchandise with a batch of clip salvaging if a trade name captures power from both positions. A powerful trade name provide means for farther merchandise line extensions to function more diversified demands of mark clients. ( Fan, 2006 )

Power of trade names provides both long-run fiscal and non-financial returns. The above illustrations of merchandise line extensions, trueness, positive association, and trust are non-financial returns. These non-financial benefits are so farther transferred to fiscal footings for illustration merchandise line extensions enable the houses to aim more clients and additions returns by spread outing the client base. A loyal client recommends the merchandise to others and besides purchases the merchandise repeatedly and deliberately which consequences in increased returns for the organisations. Costss associated with selling communications and selling channel direction are low in for powerful trade names because of client trueness and consciousness. A strong trade name is available to bear down monetary value premiums etc. ( Michael J. Etzel, 2007 )

Consumer Behavior

It is of import to understand the construct of consumer behaviour before discoursing trade name equity because consumer behaviour and trade name equity has a direct relationship. Belch ( 2004 ) described consumer behaviour as a set of activities or a procedure in which people are engaged when seeking, purchasing, utilizing and disposing of merchandise and services to fulfill their demands and wants.

Consumer behaviour dramas are really of import function in the procedure of edifice trade name equity. Today, the consumer behaviour has dramatically changed because of the recent promotion in information engineering and concern kineticss. For illustration, consumers can now purchase on-line alternatively of sing a brick and howitzer shop. Organizations have discovered advanced ways to sell goods and services to consumers by analysing the alterations in consumer behaviour and the recent promotion in engineering and concern kineticss. This advanced thought of analysing consumer behaviour plays an of import function in the procedure of edifice trade name equity. Leon G. Schiffman ( 2006 ) described a simplified theoretical account for consumer determination devising procedure which is as follows:

Input Stage. In this phase, the consumer ‘s acknowledgment of merchandise demands and wants is influenced by two chief beginnings of information which are: the company ‘s selling attempts ( Product, monetary value, topographic point and publicity ) and the external sociological influences on consumers such as household, friends, societal category and sentiment leading etc. The above mentioned two beginnings of information drama a cardinal function in actuating a consumer to purchase a peculiar merchandise or service. ( Leon G. Schiffman, 2006 )

Procedure Phase. This phase focuses on the procedure of determination devising of consumers. It is of import to observe that there are some psychological factors such as motive, perceptual experience, attitude and personality etc inherent in all worlds which affect how the consumer acknowledgment of a demand, pre-buying hunt for information and options ratings are influenced by the external inputs in the input phase. Customer experience plays a cardinal function in this phase of determination devising procedure. ( Leon G. Schiffman, 2006 )

Output Stage. The two closely related station determination activities are the chief constituents of end product phase of consumer determination devising which are: purchase behaviour and station purchase rating. For illustration, a consumer who is price-conscious can be influenced more with a voucher publicity to purchase a low-involvement merchandise like a shampoo. This monetary value consciousness is the purchase behaviour of that peculiar consumer. If the consumer feels satisfied by utilizing the shampoo so he would intent to re-buy the merchandise once more and this procedure is known as station purchase rating. ( Leon G. Schiffman, 2006 )

Brand Equity

Strong trade name equity of a product/service is ever the consequence of an efficient selling scheme of an organisation. Some illustrations of efficient selling schemes which built strong trade names are: Coca-Cola and Nike and their trade name names are recognized in every portion of the universe. ( Michael J. Etzel, 2007 )

The construct of trade name equity has been described by different schools of idea in different ways. Feldwick ( 1996 ) described trade name equity by harmonising a assortment of attacks to in a simple manner as follows:

Entire fiscal worth or value of the trade name when it is sold or recorded in the balance sheet.

A step of the strength of fond regard of clients to a trade name.

A description of clients ‘ associations and perceptual experiences about a trade name.

The first point can be regarded as trade name value and it is the construct held by comptrollers or fiscal analysts about trade name equity. The 2nd point can be stated as trade name strength because it measures the strength of client ‘s fond regard with a trade name. The concluding point is frequently called trade name image or trade name differentiation ( as called by Feldwick, 1996 ) because it is an image of trade name in the head of clients in the signifier of perceptual experiences and associations. Sellers usually mean trade name strength and trade name image when they discuss about trade name equity. Brand strength and trade name image are jointly referred as consumers ‘ trade name equity for separating it from comptrollers or fiscal analysts ‘ construct of trade name value. Brand value and trade name strength are usually in quantitative signifier while trade name image is usually estimated qualitatively. The focal point of trade name value is on concern minutess while the focal point of trade name image and strength is on consumers. ( Wood, 2000 )

Harmonizing to Feldwick ( 1996 ) , Brand Equity equations can be stated as: Brand description

This equation explains that trade name image is foremost tailored to fit demands and wants of mark market by following an efficient selling mix scheme of merchandise, monetary value, topographic point and publicity. In instance of success, the trade name description or trade name image increases the trade name strength in the market place because of addition in client trueness. Then this client trueness can be en-cashed in the signifier of trade name value it ensures a long-run watercourse of hard currency flows for the company.

Harmonizing to Davis ( 1995 ) , a trade name equity can be considered as a possible strategic parts and benefits of a trade name for its company. This decription focuses on strategic importance of trade name equity instead trusting entirely on trade name value. Davis ( 1995 ) besides believes that trade name value is resulted from consumers ‘ trade name equity as mentioned in Feldwick ( 1996 ) paper.

Keller ( 1993 ) besides defined trade name value as a end point from trade name differentiation and trade name strength. Furthermore, a trim trade name differentiation harmonizing to demands and wants of clients creates positive trade name associations and additions client trueness. But Keller ( 1993 ) , added that there was a differential impact of trade name cognition on consumer reaction to the selling of a trade name.

Harmonizing to Winters ( 1991 ) , trade name equity relates to added value of the merchandise. He suggests that value add-on to a merchandise or service, by consumer associations and perceptual experiences about a trade name name, is the trade name equity. This description once more supports the above diagram that trade name value comes from trade name strength and trade name differentiation.

Leuthesser ( 1988 ) described the construct of trade name equity really loosely. He believes that a trade name equity is the set of associations and behaviours on the portion of clients, selling channels, and the company itself which allows to gain great net income borders or larger gross revenues volumes and these could non be earned in the absence of the trade name name for the merchandise.

It is of import to observe that a strong trade name equity confirms long term fiscal and non-financial benefits and returns for the corporations. Pitta ( 1995 ) stated that a strong trade name equity increased the opportunities for a trade name for being selected by consumers relative to competiton. Brand equity besides increases client trueness and saves a trade name from competitory menaces. Aaker ( 1991 ) argues that strong trade names provide means for better profitableness and distribution channels. Furthermore, Strong brands act as a platform for new merchandise line and trade name extensions.

All the concern experts like Dacin ( 1994 ) , Aaker ( 1993 ) , Loken ( 1993 ) and Keller ( 1993 ) agreed that strong trade name equity provided agencies for trade name and merchandise line extensions. But hapless trade name extensions can destruct the equity of the trade name every bit good.

How can we make and pull off a strong trade name?

There are two beginnings for edifice strong trade name equity for a merchandise or service: Brand Associations and Brand consciousness. If clients are more cognizant about a trade name and its specifications so decidedly the consumers will prefer the trade name on rivals ‘ trade name for salvaging their clip and money in the pursuit for need satisfaction. Associations are links of clients with the trade name. Some illustrations of trade name associations are properties of the merchandise, usage state of affairss, and trade name personality. Therefore, strong trade name equity can be created by capitalising the selling attempts on trade name consciousness and trade name associations. ( Keller K. L. , 1998 )

For pull offing the trade name equity, one of the most influential association is the percieved quality of a trade name by clients. Percieved quality of the trade name is the most of import driver of profitableness and trade name trueness because it influences clients at a really deep degree. For trade name equity direction, corporations have to determine the perceptual experiences of consumers about the quality of the trade name in the right way. ( Keller K. L. , 1998 )

Another of import thing for pull offing trade name equity is the trade name trueness. Brand trueness consists of knowing repetition purchase by clients and their recommendations to others. The corporations have to develop a strong client focal point to run into the dynamic demands and wants of clients innovatively to for client satisfaction. Customer satisfaction is the most important beginning for trade name trueness. ( Best, 2008 )

Sum uping the above treatment, the procedure of edifice and managing trade name equity involves:

Increasing consciousness of the trade name among the mark clients

Making positive associations of the trade name with the clients

Having strong client focal point for trade name trueness

Determining client perceptual experiences in the right waies.

Brand Awareness

To be a feasible concern, a corporation has to make “ top of head consciousness ” about the trade name among the mark market and clients. It is of import because clients want to be cognizant of the trade name before purchasing it. Brand consciousness plays a really important function in purchase determination doing procedure of clients. Brand consciousness is the most efficient tool for determining client perceptual experiences in the right waies for edifice and managing trade name equity. Brand equity depends on trade name consciousness which can be farther re-divided into trade name callbacks and trade name acknowledgment by the clients. Recalls refer to recollection of trade name by clients. Recognition refers to the designation of trade name among viing merchandises by the clients in the market place. It is of import to observe here that trade name consciousness plays an of import function for constructing trade name equity because:

It places the trade name in consumers ‘ heads.

It serves as barrier for new entrants and trade names in the market

It assures clients about the best quality and public presentation by the merchandise or service.

It adds value for the selling channels and enhances the supply concatenation direction system for the merchandise or service. ( Emma Macdonald, 1996 )

Brand Associations

For taking efficient trade name associations, there types of analysis are needed to acquire the true image: Customer Analysis, Competitor Analysis and Company Analysis. Customer analysis covers all the facets related to clients such as client demands, wants, perceptual experiences, values and doctrine. By analysing the mark clients, positive associations for a trade name can be created to construct and pull off strong trade name equity. ( Nadim Jahangir, 2009 ; Campbell, 2002 )

Rival analysis is of import because it provides a strategic position of market way for making trade name associations. Competitor analysis can supply some utile penetrations about their competitory schemes, and strategic planning. ( Campbell, 2002 )

Finally the company analysis is of import for edifice strong trade name associations because it helps corporations to place their nucleus competences and capablenesss to develop a sustainable advantage in the market place. Furthermore, industry analysis ( Porter five forces ) and Strengths, Weaknesses, chances and menaces ( SWOT ) analysis can supply some utile penetrations for making positive trade names associations to construct trade name equity. ( Campbell, 2002 )

The above three procedures are of import because these analyses will find which associations are positive and relevant to aim clients and market. For illustration, Competitor analysis can supply agencies for distinction advantage in which clients can be targeted by utilizing alone set of merchandise properties different from rivals that are besides relevant to clients excessively and evidently this sort of associations will hold a positive consequence on trade name equity. ( Campbell, 2002 ) A normal procedure for making trade name associations looks like the undermentioned diagram.


Beginning: ( Korchia, No Date )

Brand Loyalty

The Aaker ( 1991 ) stated trade name trueness as the fond regard of client with the trade name. Yoo ( 2001 ) described trade name equity as a inclination of being loyal to a trade name by buying it repeatedly and deliberately. Oliver ( 1999 ) conceptualized trade name equity as a steadfastly held belief or pattern to re-purchase and urge a product/service systematically in the hereafter. Furthermore, this trade name trueness adds important value and repeat to trade name in the market place and selling attempts of an organisation drama a cardinal function in arousing this pattern of clients.

Harmonizing to Odin ( 2001 ) , there are two sorts of trade name trueness which are: behavoral or attitudinal. Behavoral trade name trueness is characterized by intential repetition purchase of the trade name and it is easy to mensurate because it measures discernible behaviours instead than self-assumed or reported purposes.

Chaudhuri A. ( 2001 ) stated the difference between behavoral or attitudinal trade name trueness. Harmonizing to him, attitudinal trade name trueness could be referred as the extent of dispositional promises with regard to some peculiar advantages connected with the trade name while behavioural trueness had to make with the purpose to reiterate a purchase. It is imperative for corporations and organisations to concentrate their selling attempts in edifice trade name trueness because the focal point on trade name trueness will automatically play its portion in edifice trade name equity.

Aaker ( 1991 ) presents a categorization of trade name trueness which contains: Non-customers, Price Switchers, Passive loyal and Fence Sitters, Committed. Non-customers are really our rivals ‘ clients. Price Switchers are normally trade name whippers and monetary value witting clients. Passive loyal deliberately repeat purchase the merchandise because they have a wont to utilize the merchandise instead than a ground. Fence Willem de sitters are apathetic between different trade names. Committed clients are the candidly loyal clients of the trade name.

Perceived Quality

Harmonizing to Keller ( 1998 ) , the nucleus dimension for client based trade name equity is perceived quality because it is related of clients willingness to monetary value premium, trade name penchant, and purposes to buy back the trade name. Low ( 2000 ) argued that the sensed quality of a trade name was the perceptual experience of high quality to trade name relation to rivals ‘ trade names. Zeithamal ( 2000 ) stated sensed quality as clients perceptual experience and opinion about the public presentation and high quality of the trade name relation to competition. Positive selling communications, client satisfaction, past experiences with the trade name and recommendations by equal groups play a vital in the sensed quality of a peculiar trade name. Perceived quality has the most important function in constructing trade name equity. Perceived quality straight affects the client determination doing procedure as discussed in the consumer behaviour subdivision. ( Seongdo Cho Seongmin Jeong, No Date )

Building trade name equity: The procedure

The procedure of edifice trade name consists of developing a favourable, consistent and memorable image for the trade name which is a really hard undertaking. Efficient selling mix ( Product, Price, Place and Promotion ) plays a really of import function for constructing trade name equity ( Michael J. Etzel, 2007 ) . Furthermore, client experience with the merchandise or service is straight correlated with the procedure of edifice trade name equity. Great client experiences with the merchandise add positive associations with the trade name and finally build trade name value and trade name equity. ( O’Toole, No Date )

Customer experiences like purchase, use and replacing are really of import for constructing trade name trueness and knowing repetition purchase which are the most important indexs for strong trade name equity. By adding value to client experiences, an organisation can increase the client trueness and recommendations to others. These three occasions of purchase, use and replacing are jointly called client ‘s overall experience and supply opportunities for client cheque points. These points can be capitalized to heighten client experiences ( Best, 2008 ) . O’Toole ( No Date ) described different stairss for constructing trade name equity which are as follows:

Clarify and place competitory place. First, we have to understand our positioning which can be stated as “ what client perceives as advantages and disadvantages of our merchandise or service comparative to competition ” ( Minette E. Drumwright, 1992 ) . The placement is really a alone topographic point which a house wants to get in the heads of mark clients and it is usually based on one alone thing for illustration monetary value, quality etc ( Sarvary, 2006 ) .

To understand our place, we need to place our nucleus competences, capablenesss and benefits which makes us different, better and alone relation to competition. Strategic positioning for sustainable competitory advantage is ever based on executing different activities from challengers and executing similar activities in different ways ( Porter, 1996 ) . Therefore, a house has to understand itself in footings of its singularity to competition and should capitalise on this singularity to set up a strong competitory place in the market for constructing a strong trade name.

Match merchandise with client unique unmet demands. After placing the placement of the organisation, the following measure is to fit merchandise demands with client demands by efficient selling communications to accomplish that competitory place. The value proposition for the merchandise should be enriched with a long-run solution to client unmet needs. This procedure will make trade name consciousness and trade name associations with the mark clients and will add value to trade name equity in return. ( O’Toole, No Date )

Enhance and form client experience to prolong place. The following measure for a house is to heighten and determine the client experience by run intoing client outlooks and supplying value in the signifier of merchandise life-time value and company/brand benefits interlingual rendition into overall client benefits ( Best, 2008 ) . Some other attempts like client services, pricing schemes and impart direction adds value to client experience and in return to trade name equity every bit good.

Measure the public presentation: The concluding measure to measure the public presentation is of import because it would non assist the house to place successes or failure but besides a roadmap for future. There are different ways through which an organisation can measure its public presentation but the best manner is to inquire the clients. Customer study questionnaires, observations and feedbacks are the most efficient manner to measure our public presentation. For illustration, Honda observed existent experience of clients to understand the troubles they face in lading their auto short pantss. Honda assigned his crews to parking tonss of shopping promenades and observed the real-time client experience by shooting client experience. After this analysis, Honda enhanced client experience by supplying a better auto bole forms for Honda Cars.[ 1 ]( Best, 2008 ; O’Toole, No Date )

Benefits of edifice trade name equity:

Different long-run fiscal and non-financial benefits are associated with the trade name equity. Some of these benefits are:

Increased market portion

Customer Loyalty

Monetary value Premiums

Competitive border ( Increased Barriers to Entry, International Expansion and Differential advantage )

Product line extension

Change Management. ( Michael J. Etzel, 2007 )

Global Motorcycle Industry:

Global Motorcycle market can be divided into two big parts: Developed Countries and Developing States. Demand for bikes in both markets is dramatically different and is dependent on different factors and variables. ( Nam, 2007 )

Developed Countries. In developed states, utilizing minibikes for transit is a avocation while cars such as autos are used for transporation. The tendency of bikes varies from state to state among developed states. ( Nam, 2007 )

European bike industry is confronting the issue of recession and declined gross revenues of bikes despite that fact that Eurpean bike industry is really old and experienced. Some of the most celebrated European bike makers are BMW, Piaggo and Peugeot etc. Eurpean production for bike was 1.4 million units of bikes in 2005 and it was accounted for 3.4 per centum of the universe volume. Europe itself consumed 4 per centum of the universe volume as of 2005 ( Nam, 2007 ) . Harmonizing to the updated statistics 2008, 2009 and 2010, the European production of bike declined to 1,730,821 units vs. 1,281,296 of old twelvemonth which is a 33 per centum lessening. ( Web Bike World, 2010 )

Motorcycles have big sizes and capacities in North America and bikes are largely used in main roads. The monetary values for bikes in North America scope from 1000 to 1000000s of dollars. The most celebrated US bike trade name is Harley-davidson. US production for bike was 1.8 million units of bikes in 2005 and it was accounted for 4.2 per centum of the universe volume. US ingestion for bikes is 5 per centum of the universe volume as of 2005 ( Nam, 2007 ) . Harley-Davidson stated that it shipped 112,720 units of bikes in 2010 ( first six months ) , which is a 15.2 per centum lessening in transporting comparative to the last twelvemonth ‘s 132,849 units for the period. ( Web Bike World, 2010 )

It is of import to observe that bikes produced in US and Europe have specific characteristics like Stylish expression, high Engine Capacity, Premium Price with limited production. Besides, bikes are produced chiefly for local market and little portion of production is exported to other states. ( Nam, 2007 )

Motorcycles produced in Japan are low-cost and bikes are produced in different manners. In Japan, bikes are largely produced for export intents instead than to run into local market demand. The most celebrated makers of bikes in Japan are Yamaha, Honda, Suzuki and Kawasaki etc which produce bikes largely for run intoing export demands of other Asiatic states instead than local demands. Nipponese corporations produced 10 million units of bikes in 2005. ( Nam, 2007 )

Japan, Motorcycle Production 2010

Honda ( in Unit of measurements )

Suzuki ( in Unit of measurements )

Yamaha ( in Unit of measurements )

Kawasaki ( in Unit of measurements )

Jan 2010-Mar 2010





Apr 2010-Jun 2010





Jul 2010-Sep 2010





( Beginning: Free Bike World, 2010 )

Developing Countries. In developing states, bikes are the most normally used agencies of transit in day-to-day life. The market represents the low income and largest population states of the universe with weak infrastucture and under-development. ( Nam, 2007 )

This market consumes entire 90 per centum of the entire universe bike production. Due to moo incomes and less resources such as substructure, merely little capacities ( 50-150cc ) bikes are chiefly consumed comparative to high capacities. The monetary values of bikes range from several hunderd to several thousand dollars in this market. ( Nam, 2007 )

China is the largest manufacturer for bikes for Asiatic ingestion and it produces 17 million units of bikes per twelvemonth which are accounted for 50 per centum of the entire Asiatic production. Some other states which produce bikes are Indonesia and India ( 5 million per twelvemonth ) . More significantly, Pakistan has started production of bikes every bit good. Motorcycle ingestion in developing states is expected to worsen after 2010. ( Nam, 2007 )

The Structure of World Motorcycle Production – China being the largest maker ( 2005 )


( Beginning: Nam, 2007 )

The Structure of World Motorcycle Consumption – Asia being the largest consumer ( 2005 )


( Beginning: Nam, 2007 )

Forecasted demand of Motorcycles in Pakistan after 2006:

Pakistan ‘s economic system was turning from 2001 to 2007 at a steady rate 14 per centum yearly about. As a consequence, the per capita income of Pakistan besides increased from 2001 to 2007. This addition in per capita income dramatically increased the demand for bikes in Pakistan. In an one-year study from Competitiveness Support Fund supported by USAID and Ministry of Finance Government of Pakistan ( 2006 ) , demands for bikes were projected as follows:

Forecasted Demand of New bikes in Pakistan


Per Capita Income in US dollars ( Projected )

Population 000 ‘s ( Projected )

Population Per New Motorcycle ( Projected )

Forecasted Entire Annual Demand


























( Beginning: Competitiveness Support Fund supported by USAID and Ministry of Finance Government of Pakistan, 2006 )


( Beginning: Competitiveness Support Fund supported by USAID and Ministry of Finance Government of Pakistan, 2006 )


( Beginning: Competitiveness Support Fund supported by USAID and Ministry of Finance Government of Pakistan, 2006 )


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