ese international marketing 2013
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Massimiliano G. Falcone 1 MICRI VI a.a. 2011/2012 Massimiliano G. Falcone
Massimiliano G. Falcone 2
Organization
Target Mkt
Product
Target Mkt
Mktg Mix
From vision… … to the business concept
Marketing communication and Business strategy
Organization
What?
How?
Who?
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Marketing Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others Kotler
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. American Marketing Association
(archaic, until the 1920’s), shopping, going to market
Buying and selling in a market
Marketing
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Corporate Marketing & Communication
Market Analysis
& Selection
Entry Mode Strategies
Communication strategies
Stakeholders’ Requirements Analysis
Designing strategic relations and local alliances
Communication strategies
Social, Political, Institutional Marketing & Communication
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International Marketing consists of
• finding and satysfying global customer needs better than competition, both domestic and international
• and of coordinating marketing activities with the constraints of the global environment
Target Market
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World's Wealth distribution Year 2015 (forecast)
By Global Finance
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The Next Eleven
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Globalization 2.0
First Half
Falling of Transportation Cost
• Steam Engine
• Rail Road
.
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Globalization 2.0 Infrastructure
MICRI VI a.a. 2011/2012
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Globalization 2.0 Infrastructure
MICRI VI a.a. 2011/2012
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Source C.Altomonte (Bocconi)
0 200 400 600 800
1000
1930-60 Today
(train)
Today
(airjet)
km/h
Average cargo cruising speed
Before 1930s
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Falling of Telecommunic. Cost Second Half
.
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Brief description of falling costs (Tlc, Transport)
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Porter’s Diamond
Factor conditions
• How the national playing field can contribute to the competitive advantage of the industry? (1/6)
• What is nations’ position in terms of factors of production (labour, land, infrastructure, capital, natural resources, etc.)?
e.g., Japan: “an island nation with no natural resources” – invented
JIT to save space
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Factor conditions
• How the national playing field can contribute to the competitive advantage of the industry? (2/6)
• Does the home demand gives the companies a clearer or earlier picture of emerging buyer needs?
• Do demanding buyers push for innovation?
• Is the size of the home market permit to get the “critical mass”?
Demand conditions
Porter’s Diamond
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Factor conditions
• How the national playing field can contribute to the competitive advantage of the industry? (3/6)
• Do national suppliers offer most cost-effective inputs of the needed quality in an efficient, rapid way? Demand
conditions
Supporting industries
Porter’s Diamond
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Factor conditions
• How the national playing field can contribute to the competitive advantage of the industry? (4/6)
Demand conditions
Supporting industries
Firms strategy,
structure & Rivalry
• Do national property and capital markets structure reflect the needs of a particular industry?
e.g., family firms in Italy who offer an extraordinary flexibility, niche marketing, customized products in furniture, footwear, lighting industry
Porter’s Diamond
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Factor conditions
• How the national playing field can contribute to the competitive advantage of the industry?(5/6)
Demand conditions
Supporting industries
Firms strategy,
structure & Rivalry
• Does government contribute to the creation of specialized factors (skilled labour, R&D)..?
• Does it avoid intervening in markets and protects competition?
• Does it enforce safety, product and environmental standards?
Government
Porter’s Diamond
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Factor conditions
• How the national playing field can contribute to the competitive advantage of the industry? (6/6)
Demand conditions
Supporting industries
Firms strategy,
structure & Rivalry
Government
Case
Industry
Porter’s Diamond
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Bienvenue
Bienvenido
歓迎(Kangei)
欢迎Huānyíng
Bem‐vindo
Hoşgeldin
مرحبابكمMrḩbāBkmر
WillkommenСпасибо(Spasibo)
ДобропожаловатьDobropozhalovat′
BenvenuO
Welcome
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A Challenge
Please draw a map of the world as best you can within 5 minutes
Name as many of the countries as you can
Mark an country you have visited for a week or longer
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The true size of Africa
Source: The Economist
By kay Krause October 2010
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Population
Major religions ranked by size
Source: CIA Factbook
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Another way to view the world
Languages Number of speakers
Mandarin 1,213,000,000
Spanish 329,000,000
English 328,000,000
Hindi-Hurdu 221,000,000
Arabic 182,000,000
Bengali 181,000,000
Portuguese 178,000,000
Russian 144,000,000
Japanese 122,000,000
German 90,000,000
Source: Ethnologue, 16th Edition (2009)
Languages
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Cultural Map of
the World
Inglehart-Welzel
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Another way to view the world
If we could shrink the world into a village of 100 people: 50 would be female: 50 would be male 26 would be children 8 would be over 65 60 would be Asian
• 5 would speak English • 16 would suffer from malnutrition • 23 would have not a place to shelter them from the wind and the rain • 13 would not have access to clean, safe drinking water • 7 would have a college education • 22 would own or share a computer
In 2006, only 1 person out of 100 would have had a college education
The world’s 1,210 current billionaires, Forbes reported in March 2011, hold a combined wealth that equals over half the total wealth
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“Why we are here!”
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Receiver/Decoder Sender/Encoder
Response Feed-back
Communication Process
Message
Encode Decode
Through a Medium:
• verbal: low context – high context
• non verbal
Rumor
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• Message Itconsistsofbothverbal(spokenandwriTen)andnon‐verbalsymbolsinorderto
transferaninformaOon
• Sender–EncoderAsasender–encoder,youusesymbolsthatexpressyoumessageandcreatethe
desiredresponse
• Receiver–DecoderThemessagereceiverisyourreaderorlisteneralsoknownasdecoder,ass/he
decodesyourencodedmessage.Receiverisinfluencedbyhiscontextandbyhismentalfilter
• FeedbackFeedbackcanbeadesireacOon,anoralorwriTenmessage,orsimplyasilence
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Cross Cultural Communication
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Coca-Cola in China was first rendered as Ke-kou-ke-la
Coke did not discover until after thousands of signs had been printed that the phrase means or “female horse stuffed with wax,”
Coke then researched 40,000 Chinese characters and found a close phonetic equivalent, “ko-kou-ko-le,” which can be loosely translated as “happiness in the mouth.”
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The American slogan for Salem cigarettes, “Salem—Feeling Free”
translated in the Japanese market into “When smoking Salem, you feel so refreshed that your mind seems to be free and empty”
Nike Air shoes showing flaming logo Nike Air flaming logo Nike offended Muslims in June, 1997 when the "flaming air" logo for its Nike Air sneakers looked too similar to the Arabic form of God's name, "Allah”
Nike pulled more than 38,000 pairs of sneakers from the market
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Drakkar Noir: Sensuality and touch culture in Europe and Saudi Arabia Source: Field (1986)
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Colgate introduced a toothpaste in France called Cue
was the name of a local porno magazine
Scandinavian vacuum manufacturer Electrolux
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Verbal
Lostintransla6on
Business/Busy Negocio/Ocio
Coca‐Cola:“Can’tbeatthefeeling”“IfeelCoke”“Thefeelingoflife”“Sensazioneunica”“TodayisabeauOfulday”
Visual(colors,nude…)
Role(gender,age,dressingcodes/look,context…)
Symboliclanguage(6gerinEsso,Jeans)
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Low‐contextcountries:moreemphasisisplacedonwords,directness,and6me(deadlinesandschedules)
Low‐contextcountries:moreemphasisisplacedonwords,directness,and6me(deadlinesandschedules)
CultureContext
High‐contextcountries:meaningisdeterminedbynonverbalcues,socialrela6onshipsandindirectcommunica6onsuchasmetaphorsandaphorisms
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Behavior
Dress Language
Customs Music
Architecture Food
Beliefs, values, assumptions and norms
History
Demography
Genetics Geography
Climate
Theory Development
Political Structure
Economic System
Family Patterns Educational System
Social Stratification
Technology
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Individual culture behaviour/opinions
National/Regional culture
Company culture Business/industry culture
Culture
Culture is the collective programming of the mind which distinguishes the members of one human group from another.
• Culture is learned • Culture is interrelated • Culture is shared
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A Challenge
Please write words that relate to
“Cross - Culture”
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A Challenge: Words
For Cross Culture:
Cultural Interaction Global Intercultural (Syn) Human Activities Together Interdisciplinary Orientation
Two or more Different Cultures Cultural Spheres Multiple Cultures Understanding Languages
Did any of the following words appear into your definition?
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Definition: Cross-Cultural
Interacting with &/or comparing two or more
cultures, & understanding their values, beliefs, &
norms.
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Cultural Dimensions
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Low-context countries: more emphasis is placed on words, directness, and time (deadlines and schedules)
Low-context countries: more emphasis is placed on words, directness, and time (deadlines and schedules)
Culture Context
High-context countries: meaning is determined by nonverbal cues, social relationships and indirect communication such as metaphors and aphorisms
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Power Distance Uncertainty Avoidance
Collectivism Vs. Individualism
Feminine Vs. Masculine
Collectivism Vs. Individualism
Uncertainty Avoidance Power Distance
Cultural Dimensions (Geert Hofstede )
Cultural Dimensions
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Hofstede’s Cultural Dimensions
• Extent to which less powerful members of institutions and organizations accept that power is distributed unequally – High power distance countries: people blindly
obey the orders of their superiors, centralized and tall organization structures
– Low power distance countries: flatter and decentralized organization structures, smaller ratio of supervisors
Power Distance
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• Extent to which people feel threatened by ambiguous situations and have created beliefs and institutions that try to avoid such situations – High uncertainty avoidance countries: people
have high need for security, strong belief in experts and their knowledge, structured organizational activities, more written rules, less risk taking by managers
– Low uncertainty avoidance countries: people are more willing to accept risks associated with the unknown, less structured organizational activities, fewer written rules, more risk taking by managers, higher employee turnover, more ambitious employees
Power Distance
Uncertainty Avoidance
Hofstede’s Cultural Dimensions
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• Individualism: Tendency of people to look after themselves and their immediate family only – Countries high in individualism: tend to be
wealthier, support protestant work ethic, greater individual initiative, promotions based on market value
• Collectivism: Tendency of people to belong to groups or collectives and to look after each other in exchange for loyalty – Countries high in collectivism: tend to be poorer,
less support for protestant work ethic, less individual initiative, promotions based on seniority
Power Distance
Uncertainty Avoidance
Individualism/Collectivism
Hofstede’s Cultural Dimensions
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• Masculinity: a culture in which the dominant social values are success, money and things – Countries high in masculinity: great importance
on earnings, recognition, advancement, challenge, and wealth. High job stress.
• Femininity: a culture in which the dominate social values are caring for others and the quality of life – Countries high in femininity: great importance
on cooperation, friendly atmosphere, employment security, group decision making, and living environment. Low stress and more employee freedom.
Power Distance
Uncertainty Avoidance
Individualism/Collectivism
Masculinity/ Femininity
Hofstede’s Cultural Dimensions
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Country PDI Power Distance
IDV Individualism
MAS Masconlinity
UAI Uncertainty Avoid.
Arab World 80 38 52 68
Australia 36 90 61 51
Brazil 69 38 49 76
Canada 39 80 52 48
China 80 15 55 40
Colombia 67 13 64 80
Denmark 18 74 16 23
East Africa 64 27 41 52
France 68 71 43 86
Germany 35 67 66 65
India 77 48 56 40
Indonesia 78 14 46 48
Italy 50 76 70 75
Japan 54 46 95 92
Mexico 81 30 69 82
Norway 31 69 8 50
Philippines 94 32 64 44
South Africa 49 65 63 49
Uk 35 89 66 35
Usa 40 91 62 46
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Time and Truth
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Time
Monochronic
• Time viewed as scarce resource; tangible commodity; “time is money”.
• Prefer to deal with one task at a time; low tolerance for interruptions.
• Linear view of time: divided into precise, distinct units; scheduling, deadlines and punctuality valued.
Polychronic
• Time is seen as plentiful, indefinitely available; no economic value.
• Stress involvement with people; able to do several things at the same time; interruptions the norm.
• Cyclical view of time: more patience and less urgency; natural rhythm to events.
Past: Emphasize role of past in present situation.
Present: Focus on “here and now”; fatalistic element.
Future: Emphasis on planning, setting goals; future will be “bigger and better”.
Temporal Orientations:
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Facts vs Feeling
• Truth is synonymous with facts and figures.
• Rationality is valued over emotion.
• An inductive approach is favored : theory is derived from data and experience.
• Truth is determined through interpretation, reasoning and logic.
• Intuition and emotion are valued to balance rationality.
• A deductive approach is favored: solutions are derived from theory.
Nature of Reality and Truth
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A framework for conceptualizing underlying cultural assumptions
• Man’s Relationship with Nature
• Nature of Human Activity
• Orientation to Time
• Orientation to Space
• Communication Style
Task /Relationship
Masculinity\femininity
Individualistic/Collectivist
Universal/Particular
Egalitarian / Hierarchical
Monochronic /Polychronic
High Context /Low Context
Distant/Intimate
Past/Present/ Future
Instrumental/Expressive
Bridging Assumptions
External Adaptation Internal Integration
Doing / Being • Nature of Reality and Truth
• Human Nature Basically good / Basically
Adapted from: Schneider, S.C. & Barsoux, J-L., 2003. Managing Across cultures, 2nd Ed. Harlow England: Prentice Hall/FT.
Facts\ feelings
• Nature of Human Relationships Control/Harmony/Constraint
High Tolerance /Low Tolerance of uncertainty
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Nonverbal Communication
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Functions of Nonverbal Communication
• To provide information
• To regulate interaction
• To express or hide emotion and affect
• To express power and control
all elements of communication that do not involve words
Nonverbal Communication
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Proxemics • an individual’s perception & use of space
Kinesics • study of body movements, including posture
Facial & Eye Behavior • movements that add cues for the receiver
Paralanguage • variations in speech, such as pitch, loudness, tone,
duration, laughing-crying
Nonverbal Communication
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c
c = social 1.2 to 2.1 m 2.1 to 3.7 m b
b = personal 46 to 76 cm 76 to 120 cm
Proxemics: Territorial Space
Territorial Space – bands of space extending outward from the body;
territorial space differs from culture to culture
a
a = intimate < 15 cm to 46 cm
d d = public 3.7 to 7.6 m
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SPACE
BODY LANGUAGE
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Facial and eye behaviour Paralanguage
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• 9 Dimensions: – Uncertainty avoidance – Power distance – Collectivism I: Social collectivism – Collectivism II: In-group collectivism – Gender egalitarianism – Assertiveness – Future orientation – Performance orientation – Humane orientation
the GLOBE Project: Global Leadership and Organizational Behaviour Effectiveness
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Introduction to GCI
Measured by the Global Competitiveness Index
Factors responsible for the level of economic prosperity
the set of Institutions
Policies
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Factor Driven
Economy
Impossibile trovare nel file la parte immagine con ID relazione rId1.
Efficiency Driven
Economy
Impossibile trovare nel file la parte immagine con ID relazione rId2.
Innovation Driven
Economy
Impossibile trovare nel file la parte immagine con ID relazione rId3.
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Criteria of deciding the stages
• Percent of specific types of goods allocated in total export
• Level of GDP per capita at market exchange rates:
• Transition from stage 1 to stage 2 2.000-3.000
Stage 1 Factor Driven GDP/Cap < 2.000
• Transition from stage 2 to stage 3 9.000-17.000
Stage 2 Efficiency Driven GDP/Cap 3.000-9.000
Stage 3 Innovation Driven GDP/Cap > 17.000
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•
Basic requirements
1) Institutions 2) Infrastructure
3) Macroecon. stability 4) Health and primary
education
Key for
factor-driven economy
Efficiency Enhancer
1) Higher education 2) Goods mkt efficiency 3) Labor mkt efficiency
4) Financial mkts 5) Technology
6) Mkt size
Key for
efficiency-driven economy
Innovation factors
1) Business sophistication
2) Innovation
Key for
innovation-driven economy
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“Strategy” derives from the Greek:
Rooted in the Military
Originated in business with the emergence of the business schools (Wharton and Harvard)
* "stratos" – meaning army. * "ago" – which is the ancient Greek for leading/guiding/moving.
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External Analysis: - Market - Industry
- Competition
Internal Analysis:
Resources and Competencies
Formulation: Business Strategy:
Innovation and competitive advantage
Formulation: Corporate Strategy:
Diversification, differentiation,
cost leadership. Acquisitions,
alliances
Implementation
The AFI Strategy framework
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PEST
SWOT
Foreign Market Entry Mode
Decision
Home Country Factors
Target Country Factors
Firm’s Products/Services
Firm’s Resources/Capabilities
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From Environmental uncontrollables to controllable resources and capabilities
Price Product
Promotion Distribution
Economic climate
Political
Legal Compet.
Political
Legal
Cultural
forces
Geography
Infrastructure
Economic
Forces
Competitive
Forces
Level of
Technology Structure of
Distribution
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SWOT Analysis
S W
O T
Strengths Weaknesses Opportunities Threats
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SAMPLE SWOT ANALYSIS FRAMEWORK
Strengths Weaknesses Internal Factors Opportunities
External Factors Threats
Management
Marketing
Manufacturing
R&D
Finance
Offerings
Economic
Competition
Consumer
Technology
Legal/Regulatory
Industry/Market Structure
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Deliberate versus Emergent Strategies
Realized Strategy Unrealized
Strategy
Emergent Strategy
Adapted from: Mintzberg, H. “The Strategy Concept
Sustained Superior
Performance
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Abell’s Framework for Defining the Business
Source: D. F. Abell, Defining the Business: The Starting Point of Strategic Planning (Englewood Cliffs, Prentice Hall, 1980)
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capable of exploiting existing competencies as well as exploring new opportunities with equal dexterity
EXPLOIT Refinement, choice,
production, efficiency, selection,
implementation, execution
EXPLORE search, variation,
risk taking, experimentation, play, flexibility,
discovery, innovation
Ambidexterity
Massimiliano G. Falcone 90 MICRI VII a.a. 2012/2013
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