Marketing Principles and Concepts Quiz

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Questions and Answers

What is the primary initial action within the Segmentation, Targeting, and Positioning (STP) framework?

  • Segmentation (correct)
  • Targeting
  • Marketing Mix
  • Positioning

Which element is NOT typically included as part of the core 4Ps of the marketing mix?

  • Partnership (correct)
  • Product
  • Promotion
  • Price

Which of the following exerts a direct influence on consumer purchasing decisions and behaviors?

  • Weather conditions
  • Yen or dollar exchange rate
  • Political climate
  • Socio-cultural factors (correct)

Which marketing philosophy is dedicated to meeting organizational objectives by fulfilling consumer requirements and expectations?

<p>Marketing Concept (D)</p> Signup and view all the answers

Which marketing approach prioritizes continuous enhancements of a product rather than heavy advertising efforts?

<p>Product Concept (C)</p> Signup and view all the answers

Among these, which one is usually NOT considered part of the marketing mix?

<p>Profit (A)</p> Signup and view all the answers

What is the term that defines the process of dividing a broad consumer base into smaller groups with similar needs?

<p>Market segmentation (A)</p> Signup and view all the answers

Which marketing management philosophy prioritizes large-scale selling and promotional efforts to ensure sufficient customer purchases?

<p>Selling concept (A)</p> Signup and view all the answers

What is the core focus of the marketing concept?

<p>Understanding and fulfilling customer needs and wants (C)</p> Signup and view all the answers

In contrast to the marketing concept, a sales-oriented approach typically focuses on what?

<p>Aggressive sales tactics to push products onto customers (A)</p> Signup and view all the answers

Which marketing approach emphasizes balancing customer satisfaction with the long-term well-being of society?

<p>The societal marketing concept (D)</p> Signup and view all the answers

Which philosophy is characterized by a belief that customers will not buy enough without considerable sales and promotion?

<p>Selling Concept (B)</p> Signup and view all the answers

What is a primary characteristic of a sales-oriented approach?

<p>High pressure sales tactics (B)</p> Signup and view all the answers

What is true about the priority of customer needs in a sales-oriented approach?

<p>Customer needs are ignored in sales-oriented strategy (B)</p> Signup and view all the answers

Which statement is most accurate regarding the societal marketing concept?

<p>It aims to balance customer satisfaction with societal well-being (B)</p> Signup and view all the answers

Which of the following strategies is MOST effective for a Strategic Business Unit (SBU) to achieve success?

<p>Developing tailored strategies, considering their specific market segments. (B)</p> Signup and view all the answers

What best describes the typical relationship between a Strategic Business Unit (SBU) and its parent corporation?

<p>SBUs should align with and support the parent company's overall objectives. (D)</p> Signup and view all the answers

What is the PRIMARY reason for a corporation to establish Strategic Business Units (SBUs)?

<p>To concentrate on particular markets or products within the larger corporate framework. (B)</p> Signup and view all the answers

Do strategic alternatives refer to different courses of action that a company can adopt to reach its objectives?

<p>true (A)</p> Signup and view all the answers

Can strategic alternatives only involve one path of action for the company to pursue?

<p>false (B)</p> Signup and view all the answers

Are strategic alternatives typically developed during a company's planning phase?

<p>true (A)</p> Signup and view all the answers

Based on Ansoff's Matrix, what strategy does a company use if it begins selling its current products to a new set of customers?

<p>Market Development (C)</p> Signup and view all the answers

According to Ansoff's matrix, introducing new products to the existing markets is best described as:

<p>Product Development (C)</p> Signup and view all the answers

What is a primary distinction between societal marketing and conventional marketing approaches?

<p>Societal marketing integrates social responsibility; conventional marketing solely aims for consumer satisfaction. (D)</p> Signup and view all the answers

Which principle is central to the societal orientation in marketing?

<p>Balancing the needs of consumers, the community, and the company through mutual benefit. (A)</p> Signup and view all the answers

Which strategy aligns with a societal marketing orientation for long-term growth?

<p>Building relationships with consumers while addressing social responsibility concerns. (B)</p> Signup and view all the answers

Which action is least illustrative of a company following societal marketing principles?

<p>A company that promotes harmful products to maximize its profit. (B)</p> Signup and view all the answers

How might a societal marketing approach affect a company's brand image?

<p>It can enhance the brand's image as ethical and considerate of community values. (A)</p> Signup and view all the answers

In which of the following activities would a company not be implementing a societal marketing strategy?

<p>Adopting a marketing campaign which focuses on the company's profits. (D)</p> Signup and view all the answers

Which action best demonstrates a company's commitment to societal marketing rather than traditional marketing?

<p>Investing in renewable energy sources to lower its environmental footprint. (D)</p> Signup and view all the answers

Why might a company transition from a traditional marketing approach to a societal one?

<p>To better meet the evolving expectations of consumers and communities in recent times. (B)</p> Signup and view all the answers

Which of the following options best represents a strategic role of a marketing plan?

<p>It ensures that financial resources are allocated effectively to achieve marketing objectives (A)</p> Signup and view all the answers

In order to achieve a cost competitive advantage, a company must:

<p>Constantly innovate and invest in technology to reduce costs (D)</p> Signup and view all the answers

Which of the following is NOT typically considered when describing the target market for a product or service?

<p>Consumer's favorite color (A)</p> Signup and view all the answers

Which of the following phrases best encapsulates the term 'target market'?

<p>The group of consumers who are most likely to be interested in a product or service (C)</p> Signup and view all the answers

Which of the following is NOT one of the common segmentation variables used in target market segmentation?

<p>Technographic (C)</p> Signup and view all the answers

Which statement is correct about the cost competitive advantage?

<p>Companies that have it typically have lower production costs compared to their competitors. (D)</p> Signup and view all the answers

Which of these is NOT a typical component of a comprehensive target market profile?

<p>Product return reasons (C)</p> Signup and view all the answers

What is the implication of companies having a cost competitive advantage?

<p>They generally have lower production costs relative to rivals. (C)</p> Signup and view all the answers

Which of the following is NOT a typical characteristic used to define a target market?

<p>Consumer's favorite TV show (C)</p> Signup and view all the answers

What is the primary benefit of clearly defining a target market for a product or service?

<p>To tailor the product or service to meet specific consumer needs (A)</p> Signup and view all the answers

Which of the following metrics is NOT a primary measure in digital marketing campaign success?

<p>Net Profit Margin (D)</p> Signup and view all the answers

In digital marketing, what does the acronym SEO stand for?

<p>Search Engine Optimization (C)</p> Signup and view all the answers

Which advertising model charges advertisers based on the number of times an ad is displayed?

<p>Cost-Per-Mille (CPM) (B)</p> Signup and view all the answers

What is the main purpose of A/B testing in digital marketing?

<p>Test multiple versions of a webpage or ad to see which performs better (A)</p> Signup and view all the answers

For a social media marketing campaign, which metric is most useful to measure the campaign's effectiveness?

<p>Engagement Rate (A)</p> Signup and view all the answers

An advertising agency's primary role is to do which of the following?

<p>Produce advertising efforts across various channels (D)</p> Signup and view all the answers

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Flashcards

What is the first step in the STP process?

The first step in the STP process involves identifying and analyzing different customer groups based on their needs, preferences, and behaviors. This helps businesses understand their target market better.

What are the 4 Ps of the marketing mix?

The 4 Ps of the marketing mix are Product, Price, Promotion, and Place. These four elements are crucial for businesses to effectively market their products and services.

What is a factor that influences consumer behavior?

Consumer behavior is heavily influenced by various factors, including economic conditions (like unemployment rates and inflation) that affect consumer purchasing power and spending habits.

What is the marketing concept?

The marketing concept focuses on creating customer satisfaction by meeting their needs and wants while achieving organizational goals. This approach emphasizes prioritizing customer needs over product production or sales.

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Which marketing philosophy emphasizes continuous product improvements?

The product concept emphasizes continuous improvement and innovation of products to meet the evolving needs of customers. This focuses on product quality and differentiation rather than solely on aggressive advertising.

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What is NOT part of the marketing mix?

The marketing mix includes 4 key elements: Product, Price, Promotion, and Place. Profit is a result of effective marketing, but not a part of the marketing mix itself.

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What is market segmentation?

Market segmentation involves dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors. This allows businesses to tailor their marketing efforts to specific customer groups.

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What is the marketing mix?

The marketing mix combines the 4 Ps: Product, Price, Promotion, and Place to create a comprehensive strategy for reaching target customers and achieving organizational goals.

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Societal marketing concept

This marketing philosophy emphasizes the importance of balancing customer satisfaction with society's long-term well-being and ethical considerations.

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Marketing concept

The marketing concept focuses on understanding and meeting the needs and wants of target markets more effectively than competitors.

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Selling concept

This concept emphasizes aggressive sales and promotions to push products onto customers. It prioritizes selling over understanding customer needs.

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Market Orientation

This orientation prioritizes understanding customer needs and providing value over just focusing on selling or production.

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Sales orientation focuses on selling products rather than satisfying customer needs.

This statement is true. Sales orientation prioritizes selling products rather than deeply understanding customer needs or building relationships.

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In sales orientation, the key focus is on building long-term relationships with customers.

This statement is false. Sales orientation prioritizes selling products over building long-term relationships with customers.

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Sales orientation typically involves high pressure sales tactics.

This statement is true. Sales orientation often involves high-pressure tactics to convince customers to buy products.

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Customer needs are not a priority in a sales-oriented approach.

This statement is true. In a sales-oriented approach, customer needs are often overlooked in favor of pushing products onto customers.

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Societal Marketing Orientation

A marketing approach that considers the long-term well-being of both consumers and society, balancing the needs of the company, consumers, and the environment.

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Traditional Marketing Orientations

These marketing approaches focus primarily on maximizing profits and meeting consumer demands, often neglecting broader societal concerns.

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Balancing Needs

This is a key component of societal marketing, ensuring that all stakeholders are considered, from consumers to the community and the environment.

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Social Responsibility in Marketing

This means understanding the potential impact of marketing actions on society, including environmental, social, and ethical considerations.

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Building Strong Relationships

This type of marketing can build trust and loyalty with consumers, leading to long-term business success.

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Long-Term Business Success

This involves finding a balance between short-term profits and long-term sustainability, considering the overall impact on society.

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Transparency and Communication

This is a crucial aspect of societal marketing, involving clear and transparent communication with stakeholders, explaining the company's efforts and values.

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Community Involvement

This can involve partnering with non-profit organizations, supporting community initiatives, or developing products that benefit society.

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What is the relationship between an SBU and the parent corporation?

SBUs (Strategic Business Units) are semi-autonomous divisions within a larger corporation that focus on specific markets or products. They operate independently but must align their strategies and goals with the overall objectives of the parent company.

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What's a common purpose for setting up SBUs within a corporation?

Establishing SBUs allows a corporation to focus on specific markets or products, enabling greater specialization, efficiency, and responsiveness to these distinct areas.

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What are Strategic alternatives?

Strategic alternatives represent different courses of action that a company can take to reach its objectives. These options are typically developed during the planning process and can be adjusted as needed.

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Can strategic alternatives only involve one option?

Strategic alternatives can involve multiple options. A company can explore various approaches to tackle a strategic challenge and potentially choose a combination of options.

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Are strategic alternatives developed during the planning process of a company?

True.

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Can strategic alternatives help a company adapt to changes in the external environment?

True.

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Are strategic alternatives fixed and unchangeable once they are determined?

False. Strategic alternatives are not set in stone. Companies need to be flexible and adapt their plans based on changing market conditions, competitor actions, and internal circumstances.

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What option in Ansoff's Strategic Opportunity Matrix involves selling existing products to new markets?

Market development involves introducing existing products to new markets, expanding the company's customer base and geographical reach.

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What is a cost competitive advantage?

A cost competitive advantage is achieved when a company can produce goods or services at a lower cost than its competitors, leading to higher profit margins or the ability to offer lower prices.

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Can a cost competitive advantage ONLY be obtained through lower prices?

False. Cost competitive advantage can be achieved through various methods beyond just lowering prices, such as improving efficiency, optimizing processes, and negotiating better deals with suppliers.

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Is innovation essential for maintaining a cost competitive advantage?

True. To stay ahead of the competition, companies need to constantly innovate and invest in technology to reduce costs and improve efficiency.

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Can outsourcing labor to low-cost countries create a cost competitive advantage?

True. Outsourcing labor to countries with lower labor costs is a common strategy for achieving cost competitive advantage.

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Is cost competitive advantage important for both product and service industries?

True. Cost competitive advantage is crucial in both product and service industries, as companies strive to deliver value to customers while maintaining profitability.

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What is a "target market"?

The target market is the specific group of consumers that a company aims to reach with its products or services. This group is identified based on shared characteristics, needs, and preferences.

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When defining a target market, which of the following is NOT typically considered?

Consumer's favorite color is not typically considered when determining a target market. While individual preferences are interesting, they are not typically reliable indicators of market size or potential interest in a product or service.

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What is NOT one of the common segmentation variables?

The common segmentation variables used in target market segmentation are demographic, psychographic, behavioral, and geographic. Technographic is not typically considered a standard segmentation variable.

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Why is target market definition crucial?

Identifying and understanding a specific customer group based on their needs, preferences, and behaviors to tailor products or services to meet their specific requirements.

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What is bounce rate?

A metric that measures the percentage of website visitors who leave a website after viewing only one page.

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What is SEO?

The process of optimizing a website to rank higher in search engine results pages (SERPs).

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What is A/B testing?

A digital marketing strategy that involves testing two or more versions of a webpage or ad to see which performs better.

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What is CPM advertising?

An advertising model where advertisers pay each time their ad is displayed to a user.

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What is engagement rate?

A metric that measures the engagement of an audience with a social media post or campaign.

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What factors influence consumer behavior?

Factors that shape consumer behavior, such as their favorite TV shows, preferences, income, education, and buying habits.

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Why is it important to define a target market?

A primary reason for defining a target market is to tailor products and services to meet the specific needs of consumers.

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Study Notes

Table of Contents

  • Principles of Marketing (page 4)
  • Marketing Management (page 5)
  • Marketing Management Philosophies (page 8)
  • Market Orientation (page 10)
  • Strategic Planning in Marketing (page 13)
  • Ansoff's Strategic Opportunity Market (page 15)
  • The Innovation Matrix (page 16)
  • Boston Consulting Group Model (page 17)
  • General Electric Model (page 18)
  • Marketing Plan (page 19)
  • Competitive Advantage (page 21)
  • Target Market (page 22)
  • Digital Marketing (page 23)
  • Marketing Management: Key Terms and Definitions (page 24)
  • Other References (page 26)
  • Consumer Decision Making
  • Business Marketing
  • Segmenting and Targeting Markets
  • Marketing Research
  • Product Concepts
  • Pricing Concepts
  • Marketing Communications
  • Services and Nonprofit Organization Marketing
  • Advertising, Public Relations, and Sales Promotion
  • Digital Marketing
  • Social Media and Marketing

Disclaimer

  • The booklet is for educational purposes only.
  • Accuracy and completeness are not guaranteed.
  • Review official sources for the most current information.
  • The booklet is a guide, but do not limit your review to only this material.

Principles of Marketing (page 4)

  • Segmentation, Targeting, and Positioning (STP) process starts with segmentation.
  • 4Ps of marketing mix: Price, Promotion, Place, and Product.
  • Factors influencing consumer behavior include weather, politics, economics, and culture.
  • Marketing concept focuses on satisfying customer needs and wants to achieve organizational goals.

Marketing Management (page 5)

  • Marketing philosophy emphasizing continuous product improvements rather than aggressive advertising is the Product Concept.
  • The 4Ps of the marketing mix are Place, Promotion, Price, and Product.
  • The process of dividing a market into distinct groups with different needs/characteristics is called market segmentation.
  • Product life cycle stages include Introduction, Growth, Maturity, and Decline.
  • Value proposition describes the value of a company's product or service.
  • Strategic planning models like PEST analysis, Ansoff Matrix, Porter's Five Forces, BCG, and SWOT are used to create competitive advantage.

Marketing Management Philosophies (page 8)

  • Customer-focused approach focuses on high-quality products and considering customer needs.
  • Market Segmentation divides a market into smaller segments based on distinct characteristics.
  • SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.
  • Brand equity is the financial value of a brand, separate from its tangible assets.
  • Selling concept focuses on maximizing profits via sales volume and aggressive promotions.
  • Marketing concept focuses on customer value creation and building profitable customer relationships.
  • Societal marketing concept balances customer satisfaction and societal well-being.

Marketing Management (page 9)

  • Selling concept: customers will not buy enough products unless extensive selling and promotional effort is made.
  • Marketing concept: focuses on understanding customer needs and wants.

Market Orientation (page 10)

  • Sales orientation prioritizes selling products over satisfying customer needs.
  • Key focus of sales orientation is building long-term relationships with customers.
  • Sales orientation often involves pressure tactics.
  • Customer needs are not a priority in a sales-oriented approach.
  • Sales orientation focuses on pushing products to consumers rather than listening to their feedback.

Strategic Planning in Marketing (page 13)

  • The purpose of strategic planning in marketing is to develop long-term strategies.
  • Key components of strategic planning include setting SMART objectives, evaluating and adjusting strategies, conducting SWOT analysis
  • SWOT stands for Strengths, Weaknesses, Opportunities, and Threats
  • Strategic planning in marketing leads to a company's overall success.
  • Understanding of competitors is crucial, as well as aligning marketing efforts with the organizational goals.

Strategic Planning in Marketing (page 14)

  • SBUs, or Strategic Business Units, have their own unique market segments and strategies. They support and align with the overall corporate strategy.
  • Strategic alternatives are different courses of action that companies use to meet goals. They are typically created during the planning process.

Ansoff's Strategic Opportunity Market (page 15)

  • Market development: Selling existing products to new markets.
  • Product development: Introducing new products into existing markets.
  • Market penetration: Increasing sales of existing products in current markets.
  • Diversification: Creating new markets for new products.

The Innovation Matrix (page 16)

  • Operational excellence quadrant represents companies focused on continuous improvement of products and processes.
  • Customer intimacy quadrant focuses on building strong customer relationships and tailored experiences.

Boston Consulting Group Model (page 17)

  • Cash cow: Low market growth, high market share.
  • Star: High market growth, high market share.
  • Question mark: High market growth, low market share.
  • Dog: Low market growth and low market share.
  • Strategies include Invest, Harvest, Build, and Divest.

General Electric Model (page 18)

  • Used to analyze economic growth, forecasting stock, interest rate changes, simulating consumer behavior.
  • $Y$ typically represents aggregate output.
  • Assumptions include constant demand and consumer saving fractions.

Marketing Plan (page 19)

  • Purpose of a marketing plan includes outlining goals, strategies, and budget allocation.
  • SWOT analysis helps identify internal strengths and weaknesses, and external opportunities and threats.
  • Target market segmentation is crucial for tailoring marketing strategies to specific customer groups.
  • Marketing objectives typically need to be SMART (Specific, Measurable, Achievable, Relevant, and Time-bound).

Competitive Advantage (page 21)

  • Companies with a cost competitive advantage have lower production costs.
  • Cost competitive advantage often involves innovation and technology investments.
  • Cost competitive advantage is crucial in both product and service industries.

Target Market (page 22)

  • Target market considerations typically include consumer behavior, demographics, and geographic location.
  • Key aspects of target market segmentation include psychographic, behavioral, technographic, and demographic segmentation.
  • Defining a target market is important for tailoring products/services to specific customer needs.

Digital Marketing (page 23)

  • Key metrics for assessing digital marketing campaigns include bounce rate, cost per click, customer lifetime value, and conversion rate.
  • SEO (Search Engine Optimization) is crucial in digital marketing.
  • A/B testing helps in improving website performance and digital ads.
  • Social media plays a key role in digital marketing.

Marketing Management: Key Terms and Definitions (page 24)

  • A/B Testing: Comparing two options to determine the better one.
  • Advertising Agency: Company producing advertising efforts across various channels.
  • Affiliate Marketing: Third-party referrals for commission.
  • B2B Marketing: Business-to-business marketing.
  • Bounce Rate: Percentage of visitors leaving without action.
  • Brand Equity: Value associated with a brand.
  • Brand Loyalty: Customers consistently choosing a specific brand.
  • Brand Manager: Responsible for developing brand strategies.

Other References (page 26)

  • Several books are referenced, covering diverse marketing topics.

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