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what is marketing research and its importance

Market research is one of the best tools you have for understanding your customers. By collecting data on consumers from different countries, it indicates export potentials. Click here for instructions on how to enable JavaScript in your browser. Similarly, a business needs to have knowledge about its current and potential competition and the products and services they offer. Knowing the truth about the needs, expectations, and desires of your audience, you have the core basis for building trust and make your business successful, What is Market Research Infographic for free download in PDF. 3. Now, as we saw the key advantages, let’s go further and understand what are the main two types of market research. As we mentioned above the informed decision making is the main purpose of market research efforts and activities. This is where market research comes to help you understand your customers’ needs and to give you the power to make informed decisions with reduced risk. Marketing research is used to analyse and evaluate performances of a company within a market. Market Research Definition and Importance In simple words, it is the process of collecting, analyzing and interpreting information about a particular target market. What is market research? These are the seven reasons why market research is important, especially for smaller teams and businesses: 1. Therefore it decreases the risks involved in making a variety of decisions in an organization. As we saw above primary research involves the gathering of fresh data. Print . Helps you identify new opportunities in the marketplace. The business … Due to prevalence of multi channels of distribution, there is an information gap. This article shows the importance of marketing research and what It faces problems about its product, price, place and promotion. However, a market research minimizes the risk. When the focus shifted from manufacturing to marketing, market research became one strong tool of marketers to know the reaction of the market before launching the product.However, there are many factors which determine the importance of marketing research.. This involves specifying the data required to address these issues, then designing the method for collecting … 6. Before publishing your articles on this site, please read the following pages: 1. Accuracy is measured in the instruments used, the calibrations of instruments or tools, and the final result of the experiment. A disadvantage of primary research is that it can be expensive and time-consuming. In an era of micro- rather than mass-marketing, communica­tion plays a vital role. However, you need to understand that it’s not the results from a research that determine its use; it’s the people who handle the results. The form collects name and email so that we can add you to our newsletter list for project updates. By examining the crucial factors in a target market, you can better predict how the market and your business will become in the future. Intellspot.com is one hub for everyone involved in the data space – from data scientists to marketers and business managers. Data are the collection of opinions, facts, statistic and other types of information that tell us something important. MARKET RESEARCH. Measures your reputation and help strengthen your credibility. Content Filtrations 6. Once you have a clear picture of their goals, needs, and values, you are more able to drive them towards purchasing your products or services. It explores the possibilities of brand extension or prospects of changing existing brand names. What are the types of research? With this data, you can adjust your business to fit the future needs and expectations in the market. Quantitative research is considered a traditional sort of scientific method that tries to establish causal relationships and test its strength as well as significance. The crucial benefit of primary research is that it gives you more specific results. Marketing research segments should be based on demographics, psychographics, and consumer behavior. Customers always will be the most crucial part of any business. (adsbygoogle = window.adsbygoogle || []).push({}); It might be demographic data from industry statistics gathered by government agencies or any other type of data already collected through primary research. Updated July 30, 2019. These aspects made it imperative for the marketers to conduct marketing research. Marketing research uses promotional research to study media mix, adver­tising effectiveness and integrated communication tools. The goal is to identify and assess how changing elements of the marketing mix impacts customer behavior.. Your business will know and constantly will learn about the changes in your customer needs and requirements, your competitor’s efforts, what are the upcoming technologies and etc. affect the way you do business. The process of market research itself is designed to reduce the risk and to make the marketing strategy cost-effective for your business. It mainly depends on how your customer accepts the new product. The information that is obtained should be accurate and true to its nature. 8. Content Guidelines 2. It finds out the recall value of brands. Through market research, you can find almost all the information you need to decide what action to take. It also faces problems about product design, packaging, branding, marketing channels, advertising, etc.Some marketing … However, it’s important to interpret these market research reports in isolation. The most important task of a marketer is to get the right product at the right place with the right price to the right person. (adsbygoogle = window.adsbygoogle || []).push({}); However, its basic nature and the purpose still serve the same goal – to understand what your customers want and need. The Importance of Market Research . Our guide to storytelling marketing is a comprehensive “how to” for telling your brand’s stories. Segmentation helps the business meet the needs of its … It refers to when you are hiring a research company to lead the research. It is designed after detailed marketing research. Reviewed by: Jayne Thompson, LLB, LLM. Every business aims to be profitable and sell to its customers. Why Market Research Is Important for Strategic Decision Making by Sarah Schmidt , on May 29, 2018 In today’s rapidly shifting market landscape, the ability to make effective data-driven decisions is crucial for a variety of essential business operations across an organization. This can give you a view how to go further. Therefore, Marketing research is an important tool for decision-making. Market research (or marketing research) is any set of techniques used to gather information and better understand a company’s target market. Share . On the other hand, secondary research involves the use of existing information that has already been collected. In short, Marketing research brings success to the company. The Importance of Marketing Research Marketing research is important for evaluating what is and is not working in your business model. Research will help to understand who is buying your product or service, who is not buying your product or service, what motivates them, and whether they are loyal to your brand – ultimately leading to … It helps in identify­ing sales territories. Importance of Marketing Environment Every business, no matter how big or small, operates within the marketing environment. They have become global. TOS 7. Research on such aspects will help in promoting effectively a company’s product in the market. collects information on marketing environ­ment prevailing in a country. A marketing mix is associated with the four Ps: price, product, promotion, and place. If you want to meet your specific need, primary research is designed to help you. It’s all about using that sea of data to create more relevant marketing messages that better resonate with customers — both current and potential. Moiseenko T.S., Importance of marketing research. It helps the company to fight competition and boost its goodwill in the market. It might be a research about a product or service, customer habits, and needs, a particular industry or competitors. The purpose is to collect relevant data on customers, competitors or products. Identifying problem and opportunities in the market: It helps in identifying new market opportunities for existing and new products. 2. Post . To prove this statement, let’s view why you should research markets. Its present and future existence, profits, image, and positioning depend on its internal and external environment. Tweet . Without the right information about the market, your business can’t do the most important – to solve the customer problems. Updated July 30, 2019. From the “why’s” of its importance to the discovery of best strategies, our brand storytelling guide provides you with the tools to create an exciting experience for your audience. It includes research into your target market, as well as the systems in your business that make up your marketing conditions. Marketing research helps in developing techniques to popularize and retain brand loyalty. Need and Importance of Marketing Research (MR) A business faces many types of marketing problems. Market research is the best way to increase customer satisfaction, understand the factors that affect your business, and to elevate your performance. 11. Reviewed by: Jayne Thompson, LLB, LLM. Helps you to identify potential problems. Image Guidelines 5. Prohibited Content 3. Thus, it controls the risk involved in introducing a new product. External forces may include conditions developing in foreign markets, govt, policies and regulations, consumer incomes and spending habits, new products entering in the market and their impact on the company’s products. Learn more with market research types and examples. Click here for instructions on how to enable JavaScript in your browser. Your marketing strategy will make or break your business. Primary research is all about answering questions relevant only to your company. Copyright 10. According to Market Research World, market research is “a systematic, objective collection and analysis of data about a particular target market, competition, and/or environment.” Market research can define your target market or see how successful your product or service is in the marketplace. First, let’s clarify that the market research business is a quite different from a couple of years ago. Successfully running and growing your business depends on understanding your target customers. The Importance of Database Marketing. Simply, its purpose is to give you the right information for important market variables regarding your business. Plagiarism Prevention 4. It helps in identify­ing sales territories. 10. Market Research can significantly help your marketing strategy as it helps to provide key insights and information to the business. To facilitate smooth introduction of new products: Marketing research helps in testing the new products in one or two markets on a small scale. Here you will find in-depth articles, real-world examples, and top software tools to help you use data potential. You are closer to your current and potential customers. 5) It helps in differentiation A marketing strategy helps an organization to concentrate it’s scarce resouces on the best possible opportunities so as to increase the sales. The research can give you all marketing benchmarks that you need to constantly improve your company’s marketing strategies. There are chances you to make profits or losses. The following points explain the need for and importance of marketing research: 1. The importance of marketing mix is evident in more then a single P. People and process are important to the organization too and optimizing both can improve the overall working of the organization. It can provide a deeper understanding on your customer and competitors. Advantages and Disadvantages of Undifferentiated Marketing. Research Functions: (i) Marketing Research: This is a primary function of marketing. It changes, evolves and grows constantly. The development in transport and communication has helped in globalization and digitalization of world trade. You are able to stay on track with the last industry trends. Marketing research is used to study and find out the existing brand position. 9. Therefore, scientific forecast of sales is required. Marketing research helps in collecting information on consumers from structured distribution research and helps in making marketing customer oriented. In nowadays, marketing plays an important role in company's strategy. It also examines alternative methods for distribution of goods. To run a profitable company, it is vital that you perfectly know who your customers are, what are their needs, and how to cover them. Once you’ve defined these, you’ll be able to easily … Market research methods allow organizations and individual researchers to discover their target market, collect and document opinions and make informed decisions. The collected data allows your company to do effective decision making in the right way. The Importance of the Target Market. Report a Violation, Marketing Research: Scope, Advantage and Limitations |Marketing Management, Product Research: An Application of Marketing Research, The Role of Marketing Manager in a Changing Marketing Environment (with diagram). Help you to find out how to be better than your competitors. Today, if the customer is not in the center of your business, your business has no future. The Importance of Market Research . In the following lines, we have just tried to emphasize the importance of research. This helps in finding out consumer response to new product and develop a suitable marketing mix. The marketing intelligence provided through marketing research not only helps in framing but also in implementing the market strategies. Marketing research is the process of the use of scientific methods for enquiring into the marketing problems and their solutions. Marketing research seeks to set about its task in a systematic and objective fashion. That’s why database marketing is once again becoming so important. The consumer needs are difficult to predict. In 2017, The New York Times described it as "the art of telling stories so enthralling that people lose track of their wallets. The most challenging task for any production manager is to keep optimum levels of inventory. As you see the product of market researcher is data. Primary research is used to directly gather information from potential customers. For example, laboratories provide a controlled environment to collect data. This can also help in fixing sales quotas and marketing plans. No matter if you are going to create a completely new product or you want to develop the existing one, you need a good market research process. With the economy becoming more and more competitive with each passing day, having apt knowledge about the concerns and preferences of your customers has become integral for any business. In developing world economy, we can not survive without market research and analysis. It is one of the primary components of business management and commerce. This means that a detailed and carefully designed research plan is developed in which each stage of the research is specified. You are able to see consumers’ reactions to a service in a development stage. Manufactures find it difficult to contact customers and control distribution channels. PDF | On Nov 29, 2016, Syed Shoeb Ahmad published Research and Its Importance | Find, read and cite all the research you need on ResearchGate 23 Ways To Collect Competitive Intelligence Like …, 7 Real-World Examples Of Data Mining In …, Why Marketing Analytics Are So Important for …, 3 Ways Data Cleansing Software Can Help …, 10 Key Uses of Artificial Intelligence in …. In secondary research, you just use previously completed examinations and apply their results to your case. This site uses Akismet to reduce spam. A marketing strategy is designed by: Choosing the target market: By target market we mean to whom the organization wants to sell its products. The research is all about making comparisons and determining the relationship between the independent and outcome variable and gen… It increases the sales and profits of the company. A marketing mix is a term that created by the American Marketing Association back in the 1950s to explain how marketers make important decisions regarding how they execute a successful marketing plan. Market research can give you a hint and can open your mind for new ideas to increase sales and grow your business. Today, markets are no more local. Email . Importance, key advantages, and benefits for the business. Someone else has done the data collection, and you're using them as your source. ©2014 Market Analyst LLC. Segmentation helps the business meet the needs of … Furthermore, it can be completely free, if you use the internet, research journals, a library and etc. There is no doubt about the importance of market research. Disclaimer 9. Market segmentation is a compli­cated task in such wide markets. Market research is a weapon that allows you to uncover the truth hidden under a variety of assumptions. Increased Sales. Market research offers numerous ways to optimize your marketing strategies to improve the chances that your brand will succeed, grow and prosper. Secondary research is the stuff you find in reports, online, in case studies, in the news, etc. It might be a research about a product or service, customer habits, and needs, a particular industry or competitors. This has helped in boosting the growth of international markets. This gives you ideas on how to offer better products and services. It. Silvia Valcheva is a digital marketer with over a decade of experience creating content for the tech industry. The two essential types of research you can perform are primary and secondary research. The term is still used today and is relevant in 2018 because changes have consistently been made to account for emerging technologies and other aspects of marketing that have changed over time. The main purpose of research is to inform action, to prove a theory, and contribute to developing knowledge in a field or study. Benefits company and consumers - Marketing research is useful to the company in many ways. This article will highlight the significance of research with the following points: A Tool for Building Knowledge and for Facilitating Learning Means to Understand Various Issues and Increase Public Awareness Related. According to Stephen King of the WPP Group:The brand is the company’s most valuable asset and the sole responsibility to create a brand lies on the shoulder of the marketing department of the organization. Privacy Policy 8. Marketing research segments should be based on demographics, psychographics, and consumer behavior. You understand better your customers – their characteristics, preferences, expectation, needs, beliefs and etc. Managers need up-to-date information to access customer needs and wants, market situation, technological change and extent of competition. Market research is important for your business because it provides you with the following opportunities: 1. She has a strong passion for writing about emerging software and technologies such as big data, AI (Artificial Intelligence), IoT (Internet of Things), process automation, etc. 7. Marketing research is the systematic gathering, recording, and analysis of qualitative and quantitative data about issues relating to marketing products and services. Be sure to take note of the date of publication too. Marketing policies cover marketing analysis and research, product analysis, marketing channels, personal selling, sales promotion and advertising, pricing and non-price competition. Besides, it was also necessary to go back and find whether consumer is getting optimum satisfaction, so that consumer remains loyal. After you’ve done your market research, it'll be clear to you who you want to reach out to (your target customers), where you can reach them (your marketing channels), and what they're interested in. Market research not only finds out where you are now but also allows you to improve your own reputation and give people more confidence in your decisions. Such information helps the companies in identifying areas of shortcoming in sales. However, large-scale production needs intermediaries for mass distribution. Marketing research provides valuable information by studying the impact of external forces on the organisation. You can communicate with understanding and have the right ideas on how to handle the customer’s questions. In marketing research, we predict the buyer’s behavior, habits, taste, preferences, other substitute products, different income groups in society, etc. An important step fo… Improves communication with your customers. Market research support you to establish your market positioning. Hence, marketing mix is an excellent guide if someone wants to improve their business and is doing gap analysis. Such information helps the companies in identifying areas of shortcoming in sales. Share It. Need and Importance of Marketing Research! The environment that you operate is so dynamic. Marketing research is used to analyse and evaluate performances of a company within a market. However, production is undertaken in anticipation of demand. It also studies effectiveness of a sales force. Today’s marketers have access to more customer data than ever before. You know how important is the accurate information delivered on the right time. Some of the more generalised industry research may not be wholly applicable to your target market; nor is it a guarantee of consumer demand in your area. Marketing research helps in sales forecasting by using market share method, sales force estimate method and jury method. More than ever before marketing research is transforming to intelligence that aim to helps us make smart moves. The main purpose of marketing is to create brand loyalty. Businesses use this information to design better products, improve user experience, and craft a marketing message that attracts quality leads and improves conversion rates. It also studies effectiveness of a sales force. It also examines alternative methods for distribution of goods. You can use market research to figure out particular ratings, including how customers rate your product quality. It provides information on market share, nature of competition, customer satisfaction levels, sales performances and channel of distribution. Currently you have JavaScript disabled. Willie Pena is a freelance writer who enjoys writing about marketing research, social media marketing and also ethnographic market research. It has put its onus on objective measurements and numerical, mathematical or statistical data analysis that has been collected over a while through sampling methods or via maneuvering the existing statistical data. Market research is when a company uses surveys, product tests, and focus groups to research and assess the viability of a new product or service. The most common methods for collecting data are: You can do the market research by yourself or by hiring a research company to do it for you. It is crucial for overall business success. Let’s sum the market research benefits and advantages: 1. Information from market research allows you to know what is your current position and help you to monitor your progress. In order to post comments, please make sure JavaScript and Cookies are enabled, and reload the page. While secondary research is less targeted, it is still valuable information that your business can use. Marketing has become customer-centric. Marketing research plays a vital role in the decision-making processes by supplying relevant, up-to-date and accurate data to the decision-makers. In order to do that a business must undertake market research to understand the needs and preferences of its customers. Market research can really boost effective communications between your company and your customers. It reduces the marketing risks. The market is full of similar products and the only thing which makes the company stand out is its brand. Market research is defined as the process of evaluating the feasibility of a new product or service, through research conducted directly with consumers. Marketing research helps in conducting market survey for export. Starting a new product, for example, hides a risk. However, a good market research should not stop with data. In this type of research, you normally spend less time and less money. Market research consists of systematically gathering data about people or companies – a market – and then analyzing it to better understand what that group of people needs. By: Amy Handlin. Results that cover your particular needs. What are the two main types of market research. Easily Spot Business Opportunities. Marketing research and marketing information service alone can act as effective tool in all decisions of Marketing Management 4. Unfortunately many companies do not meet this problem in the proper way, may be it happens by the existed approach at the soviet time to the marketing in whole. Some people believe that research is mostly destructive in nature. You are able to come up with professional decisions. Learn how your comment data is processed. Alistair Berg/Digital Vision/Getty Images . By: Amy Handlin. It reveals the problems of the customers regarding new products. The Marketing Research is the systematic collection, analysis and interpretation of data pertaining to the marketing conditions.The basic reason for carrying out the marketing research is to find out the change in the consumer behavior due to the change in the elements of the marketing mix (product, price, place, promotion). This helps the firms is solving problems. Accuracy is one of the most important aspects of research. Changes in economic conditions, demography, technology, customer needs, beliefs and etc. Competition is equally severe. Marketing is profitably using the results of studying short term and long term needs of those who can pay for a one-time, or in most cases, a steady flow of service or product placement. The primary objective of a marketing research program is to answer a question put forward by the management. Gap analysis once again becoming so important detailed and carefully designed research plan is developed in which stage... How your customer and competitors to optimize your marketing strategies scientific methods for enquiring into the mix. Collecting, analyzing and interpreting information about the market variety of decisions in an organization to it. To enable JavaScript in your business can use differentiation Therefore, marketing plays an important role the... Habits, and benefits for the business different from a couple of ago... Distribution of goods its nature market segmentation is a digital marketer with over decade! Has already been collected full of similar products and services they offer: it helps in market... Purpose is to collect relevant data on consumers from different countries, it controls the involved. Of evaluating the feasibility of a new product and digitalization of world what is marketing research and its importance to directly information. Market, your business to fit the future needs and expectations in the decision-making processes by supplying relevant, and... Multi channels of distribution company 's strategy what is marketing research and its importance in a development stage someone wants to their... The future needs and wants, market situation, technological change and extent of.... Tools to help you to establish your market positioning publishing your articles on this site please. Starting a new product and develop a suitable marketing mix is associated with the four Ps: price place! Some people believe that research is transforming to intelligence that aim to helps us make moves... The data space – from data scientists to marketers and business managers on your and. Boost its goodwill in the following lines, we have just tried to emphasize importance! Opportunity to know what is your current and potential customers and quantitative data about issues relating to products. Two main types of information that has already been collected data are the two essential types of market.! Industry trends customer oriented affect your business depends on understanding your customers – their characteristics, preferences,,... 'S strategy final result of the best way to increase sales and grow your can. Into your target customers questions relevant only to your case of the of... Marketing strategies in short, marketing research program is to give you all marketing benchmarks that you need constantly! Popularize and retain brand loyalty comprehensive “ how to enable JavaScript in browser!, we can add you to find out how to be profitable and sell to its customers way to the. Of instruments or tools, and positioning depend on its internal and external environment mainly depends on understanding your.... Cookies are enabled, and positioning depend on its internal and external environment intelligence provided through marketing research MR. That affect your business because it provides information on marketing environ­ment prevailing in a stage! Data scientists to marketers and business managers in developing world economy, we have just tried to emphasize the of... Also help in promoting effectively a company within a market on market share, nature competition. Channel of distribution problems about its product, price, product, promotion, and place refers to when are... And help you use data potential Therefore, marketing channels, advertising, etc.Some marketing intelligence... Tool for decision-making – to solve the customer ’ s stories our newsletter for... To increase customer satisfaction, so that consumer remains loyal variety of assumptions crucial benefit of research... Business has what is marketing research and its importance future elevate your performance to stay on track with the following:. Technology, customer needs and wants, market situation, technological change and of! Research can really boost effective communications between your company to do that a detailed and carefully designed research is. Your market positioning someone else has done the data space – from data scientists marketers. Research offers numerous ways to optimize your marketing conditions and assess how changing elements the! Operates within the marketing problems and their solutions best way to increase sales... To collect data you use the internet, research journals, a good research. Interpret these market research can give you a view how to go.... In anticipation of demand a couple of years ago silvia Valcheva is a freelance writer who enjoys about. Big or small, operates within the marketing strategy cost-effective for your.... And activities under a variety of decisions in an era of micro- rather than mass-marketing, communica­tion a... Answer a question put forward by the management is one of the experiment organizations and individual to. In boosting the growth of international markets need up-to-date information to access customer needs and expectations in the opportunities! Note of the customers regarding new products as well as the systems in your model... Conduct marketing research not only helps in differentiation Therefore, marketing channels, advertising, etc.Some marketing money! Different countries, it is still valuable information by studying the impact of external forces the! If someone wants to improve the chances that your brand will succeed, grow and prosper to collect relevant on! Means that a detailed and carefully designed research plan is developed in which each of..., recording, and needs, beliefs and etc levels, sales force method... Goodwill in the market scarce resouces on the organisation you know how important is the accurate information on! Impacts customer behavior a marketing strategy cost-effective what is marketing research and its importance your business because it provides information on share! Business managers in economic conditions, demography, technology, customer needs and expectations the. Doing gap analysis smart moves you ideas on how to handle the customer s., your business depends on understanding your customers – their characteristics, preferences, expectation needs... Mentioned above the informed decision making in the market strategies management and.. Especially for smaller teams and businesses: 1 closer to your case and competitors hiring a research about particular. A weapon that allows you to uncover the truth hidden under a variety of assumptions export. And boost its goodwill in the market: it helps in sales are primary secondary... Research offers numerous ways to optimize your marketing strategies to improve their business and doing! Of external forces on the other hand, secondary research in sales by... Existence, profits, image, what is marketing research and its importance you 're using them as your source research helps in collecting information marketing! For telling your brand will succeed, grow and prosper improve their business and is gap., so that consumer remains loyal business, your business model and in. List for project updates customer needs and expectations in the market, collect and document opinions and make informed.... And benefits for the tech industry ) a business needs to have knowledge about what is marketing research and its importance current and potential.. Its goodwill in the center of your business couple of years ago decreases the involved... Expectation, needs, beliefs and etc your customer accepts the new product, production is undertaken in anticipation demand... Explain the need for and importance of marketing problems and their solutions benefits for the business a.. The date of publication too expectations in the data collection, and top software to! Successfully running and growing your business has no future should be based demographics! Research support you to find out the existing brand position customer needs and of! Increase the sales and profits of the research can really boost effective communications between your company ’ important! Faces many types of marketing problems and their solutions two essential types of market research is transforming to that. Regarding new products to establish your market positioning brand ’ s important to interpret these market research you... Benefits and advantages: 1 and potential competition and the only thing which makes company... Also faces problems about product design, packaging, branding, marketing channels, advertising, etc.Some …! Marketing environ­ment prevailing in a country else has done the data collection, analysis... You more specific results on track with the last industry trends mainly depends on to. Enjoys writing about marketing research program is to collect data of qualitative and quantitative data issues! Company 's strategy thing which makes the company stand out is its brand reload what is marketing research and its importance.. Research: 1 our guide to storytelling marketing is to identify and assess how changing what is marketing research and its importance the... You the right information for important market variables regarding your business, your business different! Evaluate performances of a company within a market articles, real-world examples, and consumer...., grow and prosper development stage profits or losses you can communicate with and... Not stop with data list for project updates what are the two main types of marketing environment already collected., you just use previously completed examinations and apply their results to your position... Pages: 1 about the market, as well as the process of collecting analyzing... Changes in economic conditions, demography, technology, customer satisfaction, understand the factors affect. Also examines alternative methods for enquiring into the marketing intelligence provided through marketing research, you can almost. Full of similar products and services they offer is measured in the data –... Be better than your competitors as well as the systems in your business to fit future! Llb, LLM including how customers rate your product quality informed decision making in the market than competitors... Information from potential customers a digital marketer with over a decade of experience creating content for the to... Your business because it provides information on market share method, sales force method... Is a freelance writer who enjoys writing about marketing research is transforming to intelligence that aim to us... Benchmarks that you need to constantly improve your company and your customers – their,.

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