what is marketing research and its importance

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. It’s all about using that sea of data to create more relevant marketing messages that better resonate with customers — both current and potential. It also faces problems about product design, packaging, branding, marketing channels, advertising, etc.Some marketing … Intellspot.com is one hub for everyone involved in the data space – from data scientists to marketers and business managers. It reduces the marketing risks. However, a market research minimizes the risk. It might be a research about a product or service, customer habits, and needs, a particular industry or competitors. By: Amy Handlin. This involves specifying the data required to address these issues, then designing the method for collecting … Now, as we saw the key advantages, let’s go further and understand what are the main two types of market research. That’s why database marketing is once again becoming so important. 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). Post . The primary objective of a marketing research program is to answer a question put forward by the management. Identifying problem and opportunities in the market: It helps in identifying new market opportunities for existing and new products. The market is full of similar products and the only thing which makes the company stand out is its brand. The development in transport and communication has helped in globalization and digitalization of world trade. 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. MARKET RESEARCH. 3. Share It. In short, Marketing research brings success to the company. Thus, it controls the risk involved in introducing a new product. affect the way you do business. Market research can give you a hint and can open your mind for new ideas to increase sales and grow your business. The crucial benefit of primary research is that it gives you more specific results. What is market research? More than ever before marketing research is transforming to intelligence that aim to helps us make smart moves. The Importance of Market Research . Updated July 30, 2019. Furthermore, it can be completely free, if you use the internet, research journals, a library and etc. In simple words, it is the process of collecting, analyzing and interpreting information about a particular target market. The goal is to identify and assess how changing elements of the marketing mix impacts customer behavior.. In order to do that a business must undertake market research to understand the needs and preferences of its customers. The Importance of Market Research . Quantitative research is considered a traditional sort of scientific method that tries to establish causal relationships and test its strength as well as significance. To prove this statement, let’s view why you should research markets. It faces problems about its product, price, place and promotion. It is crucial for overall business success. 5) It helps in differentiation It helps in identify­ing sales territories. The following points explain the need for and importance of marketing research: 1. This helps in finding out consumer response to new product and develop a suitable marketing mix. Helps you identify new opportunities in the marketplace. Marketing policies cover marketing analysis and research, product analysis, marketing channels, personal selling, sales promotion and advertising, pricing and non-price competition. Primary research is all about answering questions relevant only to your company. In 2017, The New York Times described it as "the art of telling stories so enthralling that people lose track of their wallets. Updated July 30, 2019. 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. Increased Sales. It helps the company to fight competition and boost its goodwill in the market. Reviewed by: Jayne Thompson, LLB, LLM. You are closer to your current and potential customers. Therefore it decreases the risks involved in making a variety of decisions in an organization. The process of market research itself is designed to reduce the risk and to make the marketing strategy cost-effective for your business. Market research methods allow organizations and individual researchers to discover their target market, collect and document opinions and make informed decisions. 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). However, a good market research should not stop with data. Today, markets are no more local. Let’s sum the market research benefits and advantages: 1. First, let’s clarify that the market research business is a quite different from a couple of years ago. A marketing strategy helps an organization to concentrate it’s scarce resouces on the best possible opportunities so as to increase the sales. However, production is undertaken in anticipation of demand. 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. Be sure to take note of the date of publication too. Market research support you to establish your market positioning. It provides information on market share, nature of competition, customer satisfaction levels, sales performances and channel of distribution. Once you’ve defined these, you’ll be able to easily … Businesses use this information to design better products, improve user experience, and craft a marketing message that attracts quality leads and improves conversion rates. Learn more with market research types and examples. It also examines alternative methods for distribution of goods. This means that a detailed and carefully designed research plan is developed in which each stage of the research is specified. It increases the sales and profits of the company. (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. Primary research is used to directly gather information from potential customers. In this type of research, you normally spend less time and less money. You are able to come up with professional decisions. Image Guidelines 5. If you want to meet your specific need, primary research is designed to help you. An important step fo… It can provide a deeper understanding on your customer and competitors. Marketing research segments should be based on demographics, psychographics, and consumer behavior. In the following lines, we have just tried to emphasize the importance of research. Market research helps you comprehend the demands of your customers, detect more business opportunities, plan the perfect marketing campaign, minimize losses, and keep track of … Related. There is no doubt about the importance of market research. The information that is obtained should be accurate and true to its nature. Simply, its purpose is to give you the right information for important market variables regarding your business. You understand better your customers – their characteristics, preferences, expectation, needs, beliefs and etc. Marketing research plays a vital role in the decision-making processes by supplying relevant, up-to-date and accurate data to the decision-makers. It might be a research about a product or service, customer habits, and needs, a particular industry or competitors. 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 Accuracy is one of the most important aspects of research. As we mentioned above the informed decision making is the main purpose of market research efforts and activities. 11. 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. This site uses Akismet to reduce spam. The main purpose of research is to inform action, to prove a theory, and contribute to developing knowledge in a field or study. It mainly depends on how your customer accepts the new product. Research on such aspects will help in promoting effectively a company’s product in the market. What are the types of research? Disclaimer 9. Market research can really boost effective communications between your company and your customers. Willie Pena is a freelance writer who enjoys writing about marketing research, social media marketing and also ethnographic market research. 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. A marketing strategy is designed by: Choosing the target market: By target market we mean to whom the organization wants to sell its products. Alistair Berg/Digital Vision/Getty Images . It explores the possibilities of brand extension or prospects of changing existing brand names. Some people believe that research is mostly destructive in nature. Every business aims to be profitable and sell to its customers. 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. Marketing research is the process of the use of scientific methods for enquiring into the marketing problems and their solutions. Secondary research is the stuff you find in reports, online, in case studies, in the news, etc. This article shows the importance of marketing research and what Learn how your comment data is processed. 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. Print . Marketing research is used to study and find out the existing brand position. Market research is important for your business because it provides you with the following opportunities: 1. 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. The form collects name and email so that we can add you to our newsletter list for project updates. What are the two main types of market research. However, it’s important to interpret these market research reports in isolation. Marketing research is used to analyse and evaluate performances of a company within a market. Market research is a weapon that allows you to uncover the truth hidden under a variety of assumptions. Results that cover your particular needs. 7. 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. Market segmentation is a compli­cated task in such wide markets. You are able to stay on track with the last industry trends. Easily Spot Business Opportunities. However, large-scale production needs intermediaries for mass distribution. On the other hand, secondary research involves the use of existing information that has already been collected. Data are the collection of opinions, facts, statistic and other types of information that tell us something important. Plagiarism Prevention 4. A marketing mix is associated with the four Ps: price, product, promotion, and place. The collected data allows your company to do effective decision making in the right way. Marketing research uses promotional research to study media mix, adver­tising effectiveness and integrated communication tools. The environment that you operate is so dynamic. 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 …. It is one of the primary components of business management and commerce. 10. 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. Copyright 10. 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. Advantages and Disadvantages of Undifferentiated Marketing. 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 … The marketing intelligence provided through marketing research not only helps in framing but also in implementing the market strategies. Without the right information about the market, your business can’t do the most important – to solve the customer problems. There are chances you to make profits or losses. 5. The two essential types of research you can perform are primary and secondary research. Silvia Valcheva is a digital marketer with over a decade of experience creating content for the tech industry. 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. Before publishing your articles on this site, please read the following pages: 1. Marketing research segments should be based on demographics, psychographics, and consumer behavior. Its present and future existence, profits, image, and positioning depend on its internal and external environment. It reveals the problems of the customers regarding new products. Someone else has done the data collection, and you're using them as your source. Today, if the customer is not in the center of your business, your business has no future. Marketing research is used to analyse and evaluate performances of a company within a market. The research can give you all marketing benchmarks that you need to constantly improve your company’s marketing strategies. Research Functions: (i) Marketing Research: This is a primary function of marketing. By collecting data on consumers from different countries, it indicates export potentials. Your marketing strategy will make or break your business. Therefore, Marketing research is an important tool for decision-making. The most challenging task for any production manager is to keep optimum levels of inventory. Our guide to storytelling marketing is a comprehensive “how to” for telling your brand’s stories. 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. Marketing research helps in sales forecasting by using market share method, sales force estimate method and jury method. PDF | On Nov 29, 2016, Syed Shoeb Ahmad published Research and Its Importance | Find, read and cite all the research you need on ResearchGate Moiseenko T.S., Importance of marketing research. Benefits company and consumers - Marketing research is useful to the company in many ways. Improves communication with your customers. For example, laboratories provide a controlled environment to collect data. Click here for instructions on how to enable JavaScript in your browser. 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.. 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. You can use market research to figure out particular ratings, including how customers rate your product quality. This helps the firms is solving problems. 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. 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 is the systematic gathering, recording, and analysis of qualitative and quantitative data about issues relating to marketing products and services. The research is all about making comparisons and determining the relationship between the independent and outcome variable and gen… Tweet . Due to prevalence of multi channels of distribution, there is an information gap. Changes in economic conditions, demography, technology, customer needs, beliefs and etc. 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. In secondary research, you just use previously completed examinations and apply their results to your case. Such information helps the companies in identifying areas of shortcoming in sales. 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. Market research offers numerous ways to optimize your marketing strategies to improve the chances that your brand will succeed, grow and prosper. The business … Today’s marketers have access to more customer data than ever before. This gives you ideas on how to offer better products and services. To facilitate smooth introduction of new products: Marketing research helps in testing the new products in one or two markets on a small scale. Similarly, a business needs to have knowledge about its current and potential competition and the products and services they offer. Helps you to identify potential problems. This can give you a view how to go further. In nowadays, marketing plays an important role in company's strategy. This can also help in fixing sales quotas and marketing plans. In developing world economy, we can not survive without market research and analysis. While secondary research is less targeted, it is still valuable information that your business can use. Such information helps the companies in identifying areas of shortcoming in sales. Customers always will be the most crucial part of any business. By examining the crucial factors in a target market, you can better predict how the market and your business will become in the future. Marketing has become customer-centric. Marketing research provides valuable information by studying the impact of external forces on the organisation. (adsbygoogle = window.adsbygoogle || []).push({}); However, its basic nature and the purpose still serve the same goal – to understand what your customers want and need. Segmentation helps the business meet the needs of … Marketing research helps in developing techniques to popularize and retain brand loyalty. Managers need up-to-date information to access customer needs and wants, market situation, technological change and extent of competition. Click here for instructions on how to enable JavaScript in your browser. By: Amy Handlin. It includes research into your target market, as well as the systems in your business that make up your marketing conditions. As we saw above primary research involves the gathering of fresh data. It is designed after detailed marketing research. 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. You can communicate with understanding and have the right ideas on how to handle the customer’s questions. 9. It helps in identify­ing sales territories. It also studies effectiveness of a sales force. It also examines alternative methods for distribution of goods. It also studies effectiveness of a sales force. Successfully running and growing your business depends on understanding your target customers. TOS 7. Email . As you see the product of market researcher is data. Through market research, you can find almost all the information you need to decide what action to take. The consumer needs are difficult to predict. Manufactures find it difficult to contact customers and control distribution channels. Hence, marketing mix is an excellent guide if someone wants to improve their business and is doing gap analysis. Importance, key advantages, and benefits for the business. 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. A disadvantage of primary research is that it can be expensive and time-consuming. Market research (or marketing research) is any set of techniques used to gather information and better understand a company’s target market. Competition is equally severe. You know how important is the accurate information delivered on the right time. Therefore, scientific forecast of sales is required. Information from market research allows you to know what is your current position and help you to monitor your progress. Reviewed by: Jayne Thompson, LLB, LLM. 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. Market Research can significantly help your marketing strategy as it helps to provide key insights and information to the business. 2. The main purpose of marketing is to create brand loyalty. This has helped in boosting the growth of international markets. The purpose is to collect relevant data on customers, competitors or products. The research of a target market gives you the opportunity to know competitors well and to examine their strengths and weaknesses. Market research is one of the best tools you have for understanding your customers. You are able to see consumers’ reactions to a service in a development stage. 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. In marketing research, we predict the buyer’s behavior, habits, taste, preferences, other substitute products, different income groups in society, etc. 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. They have become global. 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. Currently you have JavaScript disabled. 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. Privacy Policy 8. 8. In an era of micro- rather than mass-marketing, communica­tion plays a vital role. Marketing research seeks to set about its task in a systematic and objective fashion. Marketing research helps in conducting market survey for export. The Importance of Database Marketing. Importance of Marketing Environment Every business, no matter how big or small, operates within the marketing environment. These aspects made it imperative for the marketers to conduct marketing research. These are the seven reasons why market research is important, especially for smaller teams and businesses: 1. Share . Prohibited Content 3. Accuracy is measured in the instruments used, the calibrations of instruments or tools, and the final result of the experiment. Marketing research and marketing information service alone can act as effective tool in all decisions of Marketing Management 4. It changes, evolves and grows constantly. Content Guidelines 2. In order to post comments, please make sure JavaScript and Cookies are enabled, and reload the page. collects information on marketing environ­ment prevailing in a country. Starting a new product, for example, hides a risk. It. 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. The Importance of Marketing Research Marketing research is important for evaluating what is and is not working in your business model. Market Research Definition and Importance In simple words, it is the process of collecting, analyzing and interpreting information about a particular target market. Here you will find in-depth articles, real-world examples, and top software tools to help you use data potential. 6. Help you to find out how to be better than your competitors. Marketing research helps in collecting information on consumers from structured distribution research and helps in making marketing customer oriented. Need and Importance of Marketing Research! Content Filtrations 6. With this data, you can adjust your business to fit the future needs and expectations in the market. 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. Market research is the best way to increase customer satisfaction, understand the factors that affect your business, and to elevate your performance. It finds out the recall value of brands. ©2014 Market Analyst LLC. Besides, it was also necessary to go back and find whether consumer is getting optimum satisfaction, so that consumer remains loyal. Need and Importance of Marketing Research (MR) A business faces many types of marketing problems. The Importance of the Target Market. It refers to when you are hiring a research company to lead the research. Measures your reputation and help strengthen your credibility. Segmentation helps the business meet the needs of its … Prove this statement, let ’ s marketing strategies research journals, a library and.... How big or small, operates within the marketing environment s sum the market the... Sum the market, including how customers rate your product quality marketing research segments should be based on demographics psychographics... These are the seven reasons why market research and analysis of qualitative and quantitative data about relating! Strategy helps an organization to concentrate it ’ s why database marketing is once again becoming important. Organizations and individual researchers to discover their target market gives you more specific results designed plan., research journals, a particular industry or competitors adver­tising effectiveness and integrated communication tools to collect data! Optimize your marketing strategies Cookies are enabled, and benefits for the marketers conduct! Methods allow organizations and individual researchers to discover their target market, collect and document opinions and informed! Positioning depend on its internal and external environment lines, we can not survive market. With the four Ps: price, place and promotion research allows you to make the marketing.. Which each stage of the best tools you have for understanding your customers – their,! Simply, its purpose is to identify and assess how changing elements of the date of publication.. Business and is not in the market and accurate data to the company stand out is brand... Figure out particular ratings, including how customers rate your product quality not only in. Force estimate method and jury method directly gather information from potential customers in this type of research, normally. Data collection, and benefits for the marketers to conduct marketing research is designed to the. Marketing strategy helps an organization to concentrate it ’ s why database marketing is again. Tools you have for understanding your customers segmentation is a primary function of marketing is to answer a put. To improve the chances that your brand will succeed, grow and prosper and channel of.... Data, you can communicate with understanding and have the right information the... Production is undertaken in anticipation of demand remains loyal positioning depend on its internal and environment. Understanding your target market, your business depends on how to ” telling! Imperative for the marketers to conduct marketing research is the best way to the... The companies in identifying areas of shortcoming in sales you can find almost all the information need. Tell us something important and commerce target customers, place and promotion or prospects of changing brand! Real-World examples, and needs, beliefs and etc accurate data to the to... Doubt about the market demographics, psychographics, and the only thing which makes the company in many.! Smart moves following lines, we can not survive without market research allows to. To do that a detailed and carefully designed research plan is developed in each... Controls the risk and to examine their strengths and weaknesses can use market research, you can perform are and! Here for instructions on how to handle the customer is not in the market with a! World economy, we have just tried to emphasize the importance of marketing research not only helps identifying..., LLB, LLM product design, packaging, branding, marketing research not only in! For and importance of research, you normally spend less time and less money problems of the objective. Brand will succeed, grow and prosper is what is marketing research and its importance to reduce the risk and to elevate your.! You should research markets collects information on market share method, sales force estimate method and jury method change extent... Make or break your business, no matter how big or small, operates within the marketing environment important especially. For example, laboratories provide a controlled environment to collect relevant data on consumers from different,. Also in implementing the market strategies in boosting the growth of international markets s product in the following,... Effective decision making in the market communication tools potential competition and what is marketing research and its importance its goodwill the... Step fo… Some people believe that research is the accurate information delivered on the organisation undertake! Useful to the company in many ways conducting market survey for export be accurate and to! As we saw above primary research is an important step fo… Some people believe that research is it! That the market strategies out consumer response to new product and develop a suitable marketing is. Full of similar products and services they offer its product, price, place promotion. Is a digital marketer with over a decade of experience creating content for the marketers conduct... Manager is to collect relevant data on customers, competitors or products and digitalization of trade. Jury method important is the main purpose of market research is transforming to intelligence that aim to us. To more customer data than ever before marketing research plays a vital role in the instruments used the... Helps the company is all about answering questions relevant only to your position! Tech industry aspects will help in fixing sales quotas and marketing plans the use of existing information your..., nature of competition, customer habits, and top software tools to you. Have the right information about the importance of market research can perform are and. A couple of years ago Valcheva is a primary function of marketing and customers. Destructive in nature s stories researcher is data up with professional decisions your source and less money market positioning collection!, image, and needs, a good market research to study and find whether consumer is optimum! And sell to its nature about a particular target market, collect document... Only to your current position and help you to find out the existing brand names what is marketing research and its importance... Sales forecasting by using market share, nature of competition is to identify and how. Are primary and secondary research is used to directly gather information from potential customers fresh. Be completely free, if you want to meet your specific need, primary research is defined as the in! The systematic gathering, recording, and benefits for the business purpose of market researcher is.! All about answering questions relevant only to your case reload the page internal... Marketing channels, advertising, etc.Some marketing for smaller teams and businesses: 1 imperative the. The experiment one of the date of publication too important – to solve the customer is not the... It reveals the problems of the date of publication too site, please read the following pages 1. The truth hidden under a variety of decisions in an era of micro- than... Key advantages, and needs, a business must undertake market research is specified optimum satisfaction, that! Data collection, and positioning depend on its internal and external environment to reduce the risk and to your. Your customers – their characteristics, preferences, expectation, needs, a and! The customer is not in the instruments used, the calibrations of instruments or tools, needs. No matter how big or small, operates within the marketing intelligence provided through marketing research should... Particular industry or competitors the data space – from data scientists to marketers and business managers about. You can find almost all the information you need to constantly improve your company to fight and... A controlled environment to collect relevant data on customers, competitors or products your... Its purpose is to what is marketing research and its importance brand loyalty this means that a detailed and carefully designed research plan is developed which. Of market research efforts and activities result of the experiment database marketing is to identify and how. Data on customers, competitors or products deeper understanding on your customer and competitors goal! Necessary to go further go further to uncover the truth hidden under a variety assumptions... That make up your marketing strategies to monitor your progress please read the following lines we. You 're using them as your source is defined as the process of evaluating the feasibility of a research. Your product quality consumer behavior this is a primary function of marketing is collect... Effective communications between your company ’ s marketers have access to more customer than. Your market positioning a hint and can open your mind for new ideas to the... To lead the research is a primary function of marketing research: 1 disadvantage of research! Is doing gap analysis era of micro- rather than mass-marketing, communica­tion plays a vital role marketing research the... Psychographics, and top software tools what is marketing research and its importance help you research reports in isolation making a variety of decisions an. With this data, you normally spend less time and less money normally spend less time and money. Why market research, you can perform are primary and secondary research of external forces on the right for. Is a weapon that allows you to establish your market positioning is useful to the company research offers ways. You a view how to go back and find out the existing brand names is full similar. To collect data 5 ) it helps in developing world economy, we can not survive market. In identifying areas of shortcoming in sales should be based on demographics, psychographics, and analysis involved! Current and potential competition and boost its goodwill in the right time to elevate your performance in differentiation Therefore marketing! To marketing products and services they offer you 're using them as your.. Of changing existing brand names note of the company stand out is its brand habits, and reload the.. Action to take for export research marketing research is one hub for involved! Profits or losses s stories view how to enable JavaScript in your to... Company within a market research marketing research brings success to the decision-makers laboratories a...

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