role of communication in destination marketing 1
TRANSCRIPT
Role Role ofof CommunicationCommunication in Destination in Destination Marketing Marketing
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Role Role ofof Communication CommunicationCommunicating with the tourist market means giving information to potential visitors about the destination and it requires,•the form an attractiveattractive imageimage of destination•develop packages of attractions and amenities
–Attractions alone do not attract not attract visitors–Also requires effective communication effective communication to
potential visitors
The Communication ProcessThe Communication Process
• Total marketing communications programs of a destination, called its communication mixcommunication mix, consists of a specific blend of advertising, sales advertising, sales promotion, public relations, publicity and promotion, public relations, publicity and personal sellingpersonal selling to achieve promotion and marketing objectives.
• The five basic communication tools are defined as the followings;
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Communication Communication ToolsTools
• AdvertisingAdvertising: : any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.
• Sales promotionSales promotion: : Short-term incentives to encourage the purchase or sales of a product or service
• Public relationsPublic relations: : Building good relations with various publics by obtaining favorable publicity, developing a good image, and handling or heading off unfavorable rumors, stories or events about the destination.
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Communication Communication ToolsTools• PublicityPublicity: : It involves various efforts to
publicize specific products or services of any destination.
• New productsNew products:: special events such as festivals, redesigned products such as aas a newly renovated hotels; newly renovated hotels; and products that are popular because of current trends in the destination are all potential candidates for publicity.
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Overcoming Problems of Intangibility of Overcoming Problems of Intangibility of Tourism/Hospitality ProductsTourism/Hospitality Products
• It may be difficult to communicate tourism/hospitality service benefits to customers, especially when the product is intangible
• IntangibilityIntangibility creates four problems:– AbstractnessAbstractness
• No one-to-one correspondence with physical objects– GeneralityGenerality
• Items that comprise a class of objects, persons, or events– NonNon--searchabilitysearchability
• Cannot be searched or inspected before purchase– Mental impalpability Mental impalpability (grasp)(grasp)
• Customers find it hard to grasp benefits of complex, multidimensional new offerings
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Advertising Strategies forAdvertising Strategies for Overcoming IntangibilityOvercoming Intangibility
Intangibility problemIntangibility problem Advertising strategy • GeneralityGenerality
– objective claims Document physical system capacity Cite past performance statistics
– subjective claims Present actual service delivery incident
• NonNon--searchabilitysearchability Present customer testimonials(witness) Cite independently audited performance• AbstractnessAbstractness Display typical customers benefiting
• Impalpability Impalpability Documentary of step-by-step process, Case history of what firm did for customer Narration of customer’s subjective
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Using Metaphors to Communicate Value PropositionsUsing Metaphors to Communicate Value Propositions
• Tangible metaphors Tangible metaphors help to communicate benefits of service offerings, for example:– Allstate insurance —“You’re in good handsYou’re in good hands”– Prudential Insurance — uses Rock of GibraltarRock of Gibraltar as symbol of
corporate strength
• MetaphorsMetaphors communicate value propositions more dramatically and emphasize key points of difference
• Highlight how service benefits are actually provided
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Facilitate Customer Involvement in Production
• When customers are actively involved in service production like tourism and hospitality, they need trainingtraining to perform well
• Show product delivery in action such as example self service at the hotel
• Television and videos engage viewer• Streaming videos Streaming videos on Web are new channels to reach active
customers• Advertising and publicity can make customers aware of changes aware of changes
in service features and delivery systems
– Sales promotions to motivate customers– Offer incentives to make necessary changes– Price discounts to encourage self-service on an ongoing basis
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Help Customers to EvaluateHelp Customers to Evaluate Product Product Offerings Offerings
• Customers sometimes may have difficulty distinguishingdistinguishing one destination from another–We have to provide some tangible cluesclues
related to destination service/product performance
• Some performance attributes lend themselves better to advertising than others
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Help Customers to Evaluate Product Offerings
– For example, airlines
• Boast about punctualitypunctuality• Do not talk overtlyovertly in advertising about
safetysafety, admission that things might go wrong make prospective travelers nervous
• Use indirect approachUse indirect approach: promote pilot expertise, mechanic’s maintenance skills, newness of aircraft
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Promote the Contributions ofPromote the Contributions of PersonnelPersonnel
• Frontline personnel Frontline personnel are central to tourism and hospitality service delivery especially in high-contact services– We have to make the service more tangible more tangible
and personalized– We can aadvertise employees dvertise employees at work to help
customers understand nature of service encounter
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Promote the Contributions ofPromote the Contributions of PersonnelPersonnel
• We can show customers work performed behind the scenesscenes to ensure good delivery– To enhance trust, highlight expertiseexpertise and
commitment of employees commitment of employees whom customers normally do not normally encounter
– Advertisements must be realisticrealistic – Messages help set customers’ expectationsexpectations– Service personnel should be informedinformed about the
content of new advertising campaigns or brochures before launch
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Setting Communication ObjectivesSetting Communication Objectives
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Checklist for Marketing Communications Planning: The “5 Ws” Model
• Who is our target audiencetarget audience?• What do we needneed to communicate and
achieve?• HowHow should we communicate this?• WhereWhere should we communicate this?• WhenWhen do communications need to take
place?
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Target Audience: 3 Broad Categories
• ProspectsProspects–Employ traditional communication
mix because prospects are not known in advance
• UsersUsers–More cost-effective channels
• EmployeesEmployees
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Target Audience: Target Audience: 3 Broad Categories3 Broad Categories
• EmployeesEmployees–Secondary audience for communication
campaigns through public media–Communications may be directed
specifically at employees as part of internal marketing campaign, not accessible to customers
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The Marketing The Marketing Communications Communications
MixMix
Marketing Communications MixMarketing Communications Mix
• Numerous forms of communication• Different forms have distinctive distinctive
capabilitiescapabilities–Types of messages that can be conveyed–Market segments most likely to be
exposed to them
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Marketing Communications MixMarketing Communications Mix
• Two types of communicationTwo types of communication– Personal communications: personalized messages
that move in both directions between two parties– Impersonal communications: messages move in only
one direction
• Technology creates gray area between bothTechnology creates gray area between both– For example, combine word processing technology
with information from database to create impression of personalization; interactive software; voice recognition technology
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Marketing Communications Mix Marketing Communications Mix for for Tourism Tourism (1)(1)
21Key: * Denotes communications originating from outside the organization
Word-of-mouth(other customers)
Selling
Customer service
Training
Advertising
Broadcast
Internet
Outdoor
Direct mail
Sampling
Coupons
Sign-up rebates
Gifts
Prizepromotions
Telemarketing
Word of mouth
*
22Key: * Denotes communications originating from outside the organization
Publicity &public relations
Pressreleases/kits
Websites
Manuals
Brochures
Interactive software
Voice mail
Signage
Interior decor
Vehicles
Equipment
Stationery
UniformsMedia-initiated
coverage*
Marketing Communications Mix for Tourism (2)(2)
Pressconferences
Sponsorship
Special Events
Trade Shows,exhibitions
Instructionalmanuals Corporate design
Sources of Messages Received by Target Audience
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Messages originating within organization
Messages originating outside organization
Production
channels
Marketingchannels
Front-line staff
Service outlets
AdvertisingSales promotionsDirect marketingPersonal sellingPublic relations
Word of mouth
Media editorial
AUD IENCE
Sources
Messages Transmitted through Messages Transmitted through Production Channels (1)Production Channels (1)
• Developed within organization and transmitted through production channels that deliver the service itself
• Customer service from front-line stafffront-line staff–Shape customer’s perceptions customer’s perceptions of service experience
and the firm –Responsible for delivering supplementary services such
as providing information, receiving payment, resolving providing information, receiving payment, resolving problems, problems, etc.
–Firm may require customer service staff to cross-sell cross-sell additional services
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Messages Transmitted through Production Channels (2)
• Customer trainingCustomer training–Familiarize customers with service product and teach
them how to use it to their best advantage via familiarization tours to the destination
• Service outlets at the hotels Service outlets at the hotels –Planned and unintended messages reach customers
through the medium of the service delivery environment itself
–Servicescape: Servicescape: Physical design of service outlet
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Messages through Marketing Channels: Trade Shows
• Stimulate extensive media coverage media coverage • Many prospective buyers come to shows (Travel
Agencies)• Opportunity to learn about latest offerings from wide
array of suppliers–Environment is very competitive–Compare and contrast –Question company reps
• Physical evidence Physical evidence displayed through exhibits, samples, demonstrations
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Communication StrategyCommunication Strategy
• The communication process has 6 6 broad stages
– To whomwhom to say it– WhyWhy to say it– WhatWhat to say– HowHow to say it – How oftenoften to say it– WhereWhere to say it
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Communications StrategyCommunications Strategy
To whom to say itTo whom to say it– Define the targettarget
market– Research– Wants and needs
clearly identified
Why say itWhy say it– Expect it to have a
certaincertain effect– What needs to be
accomplished
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CommunicationsCommunications StrategyStrategy
• What to sayWhat to say– Methods chosen
need to achieve the strategic objective
– Consumer adoption process model
• How to say itHow to say it– The execution stage– Communication that
most accurately accomplishes the goals consistent with the target market
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Communications StrategyCommunications Strategy
• How often to say How often to say itit
– Consumer-driven and budget-driven
• Where to say itWhere to say it– Using the various
components of the communications mix
– Select appropriate media
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Communications StrategyCommunications Strategy• Push/pull strategiesPush/pull strategies
– Push strategyPush strategyMarketing communication efforts to intermediariesintermediaries, who then push the product to their customer base
– Pull strategyPull strategyMarketing communication efforts directly to the consumerconsumer, who purchases the product directly or through an intermediary
– Both are common in the communications industry
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Word of Mouth (WOM) Communication Word of Mouth (WOM) Communication
• Most powerful form of communication• Products cannot be tested before
purchase so outside advice is important• Elements of the communication mix
can influence WOM• In this way, what we what we dodo has more
impact than what we what we saysay
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Word of Mouth (WOM) CommunicationWord of Mouth (WOM) Communication
• Impact of word of mouthImpact of word of mouth– Should give people something interestinginteresting
to talk about– Create communitiescommunities and networks to
connect people– Work with influentialinfluential communities– Create advocateadvocate programs– Blogs
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Word of Mouth (WOM) CommunicationWord of Mouth (WOM) Communication
• Measuring word of mouthword of mouth– Lifetime value of a customer based on:
• Gross profit on an average purchase• Average number of purchases a customer
makes each year• Average number of years customer will
continue to purchase• Probability that customer will continue to
purchase
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The Communication ProcessThe Communication Process
Design the messageDesign the message
• Message ContentContent • Message StructureStructure • Message FormatFormat • Message SourceSource
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The Communication ProcessThe Communication Process
• Select Communication ChannelsChannels
• PersonalPersonal Communication Channels • NonNon--personal personal Communication Channels
• Select the Message Source
• Measure Communication Results
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Establishing the Total Marketing Establishing the Total Marketing Communications BudgetCommunications Budget
• Affordable Method Affordable Method – based on what the company can afford
• Percentage of Sales MethodPercentage of Sales Method – based on a percentage of current or forecasted sales
• Competitive Parity Method Competitive Parity Method – based on competitors’ budgets
• Objective and Task Method Objective and Task Method – based on objectives, tasks, and estimated costs
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Nature of Each Promotion ToolNature of Each Promotion Tool
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Advertising Advertising
Personal Selling
Personal Selling
SalesPromotion
SalesPromotion
PublicRelations
PublicRelations
DirectMarketing
DirectMarketing
Reach Many Buyers, Repeat Message Many Times, Impersonal, Expensive
Reach Many Buyers, Repeat Message Many Times, Impersonal, Expensive
Personal Interaction, Relationship Building, Most Expensive Promotional
Tool
Personal Interaction, Relationship Building, Most Expensive Promotional
Tool
Wide Assortment of Tools, Rewards Quick Response, Efforts Short-LivedWide Assortment of Tools, Rewards Quick Response, Efforts Short-Lived
Very Believable, Dramatize a Company or Product, Underutilized
Very Believable, Dramatize a Company or Product, Underutilized
Nonpublic, Immediate, Customized, Interactive
Nonpublic, Immediate, Customized, Interactive
Factors in Setting the Promotion Mix
• TypeType of Product and Market
• PushPush vs. PullPull Strategy
• Buyer ReadinessReadiness State
• Product Life-CycleLife-Cycle Stage
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Messages through Marketing Channels: AdvertisingAdvertising
• Build awareness, inform, persuade, and remind
• ChallengeChallenge: How does a firm stand out from the crowd?–TV, radio broadcasts, newspapers, magazines,
Internet, many physical facilities, transit vehicles—all cluttered with ads
–Wide array of paid advertising media–Ads reinforced by direct marketing tools
• Research suggests that less than half of all ads generate a positive return positive return on their investment
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Major Advertising DecisionsMajor Advertising Decisions
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Objectives Setting
•Communication objectives•Sales Objectives
Setting the Budget
Message Decisions•Message Strategy•Message Execution
Media Decisions•Reach, Frequency, Impact•Major Media Types•Specific Media Vehicles•Media Timing
Campaign Evaluation•Communication Impact•Sales Impact
Setting Advertising ObjectivesSetting Advertising Objectives
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Informative AdvertisingInformative AdvertisingInform Consumers or Inform Consumers or Build Build PrimaryPrimary Demand Demand Persuasive AdvertisingPersuasive Advertising
Build Build SelectiveSelective Demand Demand
Reminder AdvertisingReminder AdvertisingKeeps Consumers ThinkingKeeps Consumers Thinking
About a ProductAbout a Product
AdvertisingAdvertising
• Ideally, will accomplishIdeally, will accomplish::– TangibilizeTangibilize the service element– Promise a benefit that can provide
solutions to problems– DifferentiateDifferentiate the property from that of the
competition– Have positive effects positive effects on employees who
must execute the promises– CapitalizeCapitalize (benefit) on word of mouth
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AdvertisingAdvertising
CollateralCollateral material material– Promotional
materials such as brochures, direct mail, and other forms of advertising that are used to informinform customers and createcreate interest
MerchandisingMerchandising– A tool used in the
marketing communications mix to reach identified target markets
– Primarily an in-house in-house marketing technique marketing technique used to stimulate sales of additional products or services on premise
– A long-term goal is increasing customer customer satisfactionsatisfaction
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MMerchandisingerchandising• merchandising is any practice which contributes
to the sale of products to a retail consumer• replica jerseys, keychains, a wide range of
clothing, sports equipment, posters and wall plaques are the examples
Basic rules of merchandising:– Have a purposepurpose beyond sales projections– CompatibilityCompatibility and consistency– PracticalityPracticality– ConsistencyConsistency– SimplicitySimplicity
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MMerchandisingerchandising
• Examples of good merchandising– Business centers Business centers in hotels that cater
to business travelers– PizzaPizza on finer hotels’ room service
menus– Mini bars Mini bars in guest rooms
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Major Decisions in AdvertisingMajor Decisions in Advertising
• Setting the ObjectivesObjectives
• Setting the Advertising BudgetBudget
• Message DecisionsDecisions
• Media DecisionsDecisions
• Campaign EvaluationEvaluation
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Media DecisionsMedia Decisions
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Step 1. Decide on Reach, Frequency, Decide on Reach, Frequency, and Impact and Impact
Step 2. Choosing Among Major Media TypesMedia Habits of Target Consumers,
Nature of the Product, Types of Message, Cost
Step 3. Selecting Specific Media VehiclesSpecific Media Within a Given Type, i.e. Magazines.
Must Balance Media Cost Against Media Factors:Audience Quality & Attention, Editorial Quality
Step 4. Deciding on Media TimingScheduling of Advertising Over the Course of a Year
Pattern of Ads: Continuity or Pulsing
Profiles of Major Media Types
49©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens
• Mailings, recorded telephone messages, faxes, e-mail
• Potential to send personalized messages to highly targeted micro-segments– Need detailed database of information
about customers and prospects
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Messages through Marketing Channels: Messages through Marketing Channels: Direct Marketing (1)Direct Marketing (1)
Messages through Marketing Channels: Direct Marketing (2)
• Advance in on-demand technologies empower consumers to decide how and when they prefer to be reached, and by whom– For example, e-mail spam filters, pop-up blockers– Permission marketingPermission marketing: customers encouraged to “raise
their hands” and agree to learn more about a company and its products in anticipation of receiving something of value
– Enables firms to build strong relationships with custrong relationships with customers– For example, people invited to register at a firm’s website
and specify what type of information they like to receive via e-mail
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Messages through Marketing Channels: Sales Promotion (1)
Defined as “communication attached to an communication attached to an incentiveincentive”
Should be specific to a time period, price, or customer group
Motivates customers to use a specific service sooner, in greater volume with each purchase, or more frequently
Provides a “competitive edgecompetitive edge” during periods when demand would be weak
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Messages through Marketing Channels: Sales Promotion (2)
Speeds up introduction and acceptance of new services
Interesting sales promotions can generate attention and put firm in favorable light (especially if interesting results publicized)For example, SAS International Hotels—if a hotel
had vacant rooms, guests older 65 years old could get a discount equivalent to their years
When a guest announced his age as 102 and asked to be paid 2 % of the room rate in return for staying the night, he received it—and got a game of tennis with the general manager!
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Messages through Marketing Channels:Public RelationsPublic Relations
PR/publicity involves efforts to stimulate positive interest in an organization and its products through third partiesFor example, press conferences, news releases, For example, press conferences, news releases,
sponsorshipssponsorships Corporate PR specialists teach senior managers how
to present themselves well at public events, especially when faced with hostile questioning
Unusual activities can present an opportunity to promote company’s expertise
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Public RelationsPublic Relations (PR) (PR)
• PR effort can steersteer in a positive or negative way
• Press release is a prepared document for release to selected media containing information or “newsnews” about a firm
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Public RelationsPublic RelationsUndertaking public Undertaking public relationsrelations– An ongoing task that is
an important part of the marketing planning
– Happens at corporate, property or unit level
– Employee and management belonging to public organizations contributes in some manner to PR
Planning public relationsPlanning public relations
– Identify a purpose and know the target markets
– Consider the benefit to the customer
– Know the correct media to reach the target market prospects
– Establish relationships with editorseditors and writerswriters and other media
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Major ActivitiesActivities of PR Departments
• Press Relations• Product Publicity• Corporate Communication• Lobbying• Counseling
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PublicityPublicity• Extensive mention in the news media or by
word of mouth or other means of communication, and messages about firm disseminated through various media to attract public notice
• Product Related PublicityProduct Related Publicity– Assist in the Launch of New Products.– Assist in Repositioning a Mature Product– Build Up Interest in a Product Category
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PublicityPublicity Publicity is created to
generate continued positive coverage positive coverage of a firm
Have a targeted purpose and an evaluation post-publicity
Publicity helps with promotionspromotions
Starts with inviting media to cover a specific event
Press releases Press releases of background information are made available at the event
PR works the event, pitching to the media
Follow-up calls and thank you
Program evaluation Make provisions for the
unexpected; crisis management teams
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Major Tools in Marketing PR
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Public ServiceActivities
IdentityMedia
Speeches
Publications
News
Events
DiscussionDiscussion Questions Questions
• Find several advertisements for a hospitality or travel organisation. Then visit their web site. Is the communication provided on the web site congruent with and support their print adverstising and broadcast advertising? Explain your answers.
• Recently, a number of restaurants have shifted some of their promotional budget from advertising to public relations. What benefits does public relations offer that would make the restaurants spend more?
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Thanks for Thanks for attentionattention
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