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E-Marketing/6E Chapter 12
Communication: Owned Media
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Chapter 12 Objectives After reading Chapter 12, you will be able to:
Define integrated marketing communication (IMC) Explain how marketers use the AIDA model and the hierarchy of effects model. List the five traditional marketing communication tools and distinguish between traditional media and social media. Identify the differences in control and reach among owned, paid, and earned media. ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Chapter 12 Objectives, Cont.
Discuss why companies use content marketing. Describe the most commonly used owned media and their benefits for marketing. Explain how and why marketers use search engine optimization. Highlight some of the metrics marketers can use to evaluate owned media performance. ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Will it Blend? Blendtec , a supplier of commercial blenders to Starbucks and others, produced a video in which the CEO blended unusual products such as a garden rake and a golf club. The video, uploaded to YouTube, received 3.9 million views in an 8-month period and 8.2M views since The Will It Blend? Campaign clearly shows the product benefits in a humorous and engaging way and the value of connecting with consumers online. Will It Blend? is a favorite of nearly 10,000 registered YouTube visitors. Is it also one of yours? ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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E-MARKETING COMMUNICATION
Internet marketing is a powerful way to start and strengthen relationships with customers. Users are in control Can delete unwanted incoming Can impatiently click away when website don’t quickly deliver desired information The key to success include Providing relevant, interesting messages Engaging internet users by attracting them Marketing communication (MarCom) tools that use technology to build brands are Important keys to capturing attention and winning long-term customer relationships ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Integrated Marketing Communication (IMC)
IMC is a cross-functional process for planning, executing, and monitoring brand communications. The goal is to profitably acquire, retain, and grow customers. Why IMC is a cross-functional? Because every touch point a customer has with a firm or its agents helps to form brand images Profitable customer relationships are key to a firm’s existence IMC strategy begins with a thorough understanding of target markets, the brand, its competition, and other internal and external factors. Define integrated marketing communication (IMC) and explain the importance of the hierarchy of effects model. ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Integrated Marketing Communication (IMC), Cont.
Many IMC experts agree that IMC should Be more strategic than executional Be about more than just advertising and sales promotion messages Include one & two way communication Be results driven Define integrated marketing communication (IMC) and explain the importance of the hierarchy of effects model. ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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IMC Goals and Strategies
AIDA model “awareness, interest, desire & action” Hierarchy of Effects Model “think, feel, do” ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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IMC Goals and Strategies; Cont.
The AIDA model and hierarchy of effects model help guide selection of online and offline MarCom tools to meet their goals. Both models recognize that consumers first become aware of a product before they develop feelings and purchase it. Aware & learn / think Positive or negative attitude / feel Purchase the product / do ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Social Media Strategies & Tactics
hierarchy of effects model can help marketers understand where consumers stand in relation to the purchase cycle so the company can select appropriate communication objectives and strategies, such as: Build brand equity. Formulate a direct response. ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Traditional Marketing Communication Tools
The five key marketing communication tools are also called the promotion mix: Advertising Public relations Sales promotion Direct marketing Personal selling Marketers often discuss IMC in terms of senders and recipients, media type, and owned, paid and earned media. ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Traditional Marketing Communication Tools, Cont. ADVERTISING
Advertising is “any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor” (Kotler & Armstrong, 2011). Social Media examples: Paid message placed in a YouTube video, Facebook or LinkedIn Ad sponsored content delivered to mobile phones ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Traditional Marketing Communication Tools, Cont. Public Relations
Public relations involves “building good relations with the company’s various publics by obtaining favorable publicity, building up a good “corporate image” and handling or heading off unfavorable rumors, stories and events” (Kotler & Armstrong, 2011). Social Media examples: Company-created multimedia content (e.g. online videos, blogs, wikis, photos…) Social media press releases, Social media events Social media apps for mobile phones ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Traditional Marketing Communication Tools, Cont. Sales Promotion
Sales Promotion consists of “short-term incentives to encourage the immediate purchase or sale of a product or service” (Kotler & Armstrong, 2011). Social Media examples: Groupon shared discounts Free sampling of digital products (e.g. music, software…) Games (Advergames are a combination of online advertising and sales promotion) ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Traditional Marketing Communication Tools, Cont. Direct Marketing
Direct Marketing is: "an interactive process of addressable communication that uses one or more advertising media to effect, at any location, a measurable sale, lead, retail purchase or charitable donation, with this activity analyzed on a database for the development of ongoing mutually beneficial relationships between marketers and customers, prospects or donors." Social Media examples, the entire internet & social media, specifically: and text messaging with offers from companies Location based systems (Foursquare) RSS feeds ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Traditional Marketing Communication Tools, Cont. Personal Selling
Personal Selling is “personal interactions between a customer’s and the firm’s sales force for the purpose of making sales and building customer relationships” (Kotler & Armstrong, 2011). 1:1 interaction can also be done online. Social Media examples: Chat bots (also called virtual agents / assistants), that allow for conversation on a Website. Sales lead generation tools. ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Owned, Paid & Earned Media
Media means only traditional media Communication media are communication channels used to disseminate news, information, entertainment, and promotional messages. In contrast, Social media blend technology and social interactions for co-creation of content and value. Owned media carry communication messages from the organization to internet users on owned channels. Paid media are properties owned by others who are paid to carry promotional messages. Earned media are when individual conversations become the channel. ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Owned Media Includes e-marketing media channels that are fully or partially controlled by the organizations who create the lion’s share of the multimedia content. This means that company owned media take place on someone else’s site, so there are more rules and requirements. Primary goals are to Engage consumers with positive brand content. Entice them to pass along content to others. Exercise CRM (customer relationship management). ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Content marketing Content marketing is a strategy involving creating and publishing content offline and online on Web sites and in social media. As a result, digital content functions as inbound marketing to attract customers and prospects, with appropriate content available when and where users seek information. All owned media can be considered content marketing. Companies become media publishers online Companies can monetize owned media content by: Selling digital content on their media properties Accepting Google’s Ad Sense or other types of ads Becoming an affiliate of another Web site ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Web Site Marketing Public Relations (MPR) includes brand- related activities and nonpaid, third-party media coverage to positively influence target markets. MPR is the portion of PR directed to the firm’s customer and prospects in order to build awareness and positive attitudes about its brands (Will it Blend?). There were an estimated 555 million Web sites at the end of 2011. Every organization, company, individual, or brand Web site is an MPR tool because it serves primarily as an electronic brochure, including current product and company information. ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Web Site, Cont. Advantages:
A low-cost alternative to paper brochures or press releases Product information updated in company databases The Web can reach new prospects searching for particular products (inbound marketing) The Web site is a door into a company and must provide inviting, organized, and relevant content. Microsites are Web sites designed for a narrow purpose, with only 3 to 5 pages. Objective of company Web sites is to provide information, entertain, build communities, and serve as a communication channel with customers. ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Web Site Landing Pages Landing pages are closely related to Microsites because they are often stand-alone Web pages. A landing page is a unique page that appears after a user clicks on a link associated with a Web site. Companies create many different landing pages that match key words, current offers, ads, and more. A/B testing is when there are two versions of a Web page with similar content and images for testing which performs better. Companies conduct A/B testing to optimize clickthrough rates and conversion to purchase. ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Mobile Sites Mobile Sites are:
The rapid growth of mobile internet access has marketers scrambling to create mobile versions of their Web sites. Mobile Sites are: Quicker to download Simpler Focused on the key content ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Web Site Chat Some companies provide real-time sales assistance online. Many companies offer a live chat feature. Users can open it and ask questions about products in a real-time chat with a customer service representative. The rep can also push Web pages directly to the customer so he/she can view the product and take the order during the chat session. ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Blogs Blogs (from the term Web logs) are Web sites where entries are listed in reverse chronological order and readers can comment on any entry. Objective of Blogs id to disseminate views, attract site visitors, engage in conversations, and support expert standing There were more than 181 million blogs at the end of 2011. There are many types of blogs: CEOs blog to put a personal face on their companies. Consultants and thought leaders create blogs to disseminate views, promote books, etc. Marketers use blogs to draw users to their Web sites and need to decide: Which platform to use? Who will do the writing? How often will they post? What is the purpose of the blog? Companies can become involved in blogs without starting their own (by using RSS feeds)
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Support Forums/Communities
Companies create spaces for consumers, prospects, and business customers to: Discuss topics of interest, Provide new product ideas or Seek company support with technical or product issues, among other goals. For success, marketers should observe, recruit, evaluate platforms, engage, measure, promote, and improve their online communities. ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Podcasts A podcast is a digital media file available for download online to computers, music players, tablets or smartphones. Podcasts began with purely audio files for the iPod and other MP3 players Now users can download video podcasts (“vidcasts” or “videocasts”) for use on many types of receiving appliances. The aim of Podcasts is to support brand-building ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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remains the most important communication technique for building customer relationships. 75.4% of marketers invest in campaigns. has advantages over postal direct mail. No postage or printing charges. Immediate and convenient avenue for direct response using hyperlinks. Can be automatically individualized. Quicker ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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E-Mail, Cont. E-mail difficulties include: Spam filters and finding
Maintaining appropriate lists, which can be built in any of three ways: Web site registration Rented from a list broker Harvested from some newsgroup postings or online directories s: offers the chance for real dialogue with individual customers Provides a way to develop broad and deep customer relationships ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Permission Marketing: Opt-in, Opt-out
Opt-in: users have voluntarily given permission to receive commercial Marketers messages to opt-in lists can generate response rates of up to 90%, because these are interested users. Opt-out is when users have to uncheck the box on a web page to prevent being put on the list. Opt-in techniques are part of a bigger marketing strategy called permission marketing or “turning strangers into customers.” Permission marketing: an opt-in form of marketing in which advertisers present marketing communication messages to consumers who agree to receive them. ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Rules for Successful E-Mail Marketing
Use opt-in to build trust Check ISP filters to ensure reputation Use professional addresses Make it easy to unsubscribe Use micro-segmentation Small improvements can raise response rates Give recipients a plenty of opportunities to engage with the Use metrics to track success ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Spam No online users like to receive unsolicited email.
Now illegal due to the CAN-SPAM Act Spammers routinely harvest addresses from Newsgroup postings Universities and colleges. ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Privacy Databases drive e-mail marketing
Firms must collect personal information both online and offline Then sending prospects , customized web pages, display ads, and more Firms must use information to provide value and not share without permission Users don’t mind their behaviors being tracked if they are for specific purposes ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Text Messaging Short Message Services (SMS) are up to 160 characters of text sent over the Internet usually with a cell phone or smartphone (Twitter). Instant Messaging are short messages sent among users who are online at the same time Multimedia message service (MMS) is not commonly in use yet because of handheld capability Marketers can build relationships by sending permission-based information to customers when and where they want to receive it. To succeed, the messages should be: Short, personalized, interactive and relevant ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Online Events Designed to generate user interest, build traffic, or generate revenue with paid admission May include Online fashion shows, Seminars (Webinars), Workshops Online discussions ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Sales Promotion Offers
Sales promotions are short-term incentives of gifts or money that facilitate the movement of products from producer to end-user. Online sales promotions can build brands, databases, and support sales. Most do not build long term customer relationships. Online sales promotions works especially to entice consumers to change their behavior in the short term. 3-5 higher rates with online promotions than with direct postal mail. ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Sales Promotion Offers, Cont.
Sales promotions activities include Coupons Sampling Free download of a demo version of software (expires in 30 to 60 days) Short sample music clip Contests, Sweepstakes Draws traffic and keep users returning Contests require skill Sweepstakes involve a pure chance drawing for the winners Virtual Worlds (to encourage engagement) Sites where users take the form of avatars Socialize in an online space Some companies use their avatars as promotional vehicles ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Sales Promotion Offers, Cont.
Online games (to engage users with product-related content) Played on consoles, PCs, and portable devices Advergames combine online advertising and gaming, featuring a company’s product Online Gifting (for revenue) Retailers sell group gift cards on their own Web sites and social networking pages. The customer can circulate it to many others, Others can add additional personalized messages and contribute money via PayPal. Branded Mobile Apps and widgets These support social interactions and user contributions All but the smallest companies will soon have a mobile presence ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Sales Promotion Offers, Cont.
QR Codes and Mobile Tags QR codes are barcodes that appear in a white background They are an extension of offline paid media Use of two-dimensional mobile tags in retail stores is growing Aim: to provide more information Location-Based Marketing Involves promotions pushed to mobile devices based on user location Requires a global positioning system (GPS) in a handheld or automotive device Aim: to reach users who are at or near a marketing location ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Sales Promotion Offers, Cont.
Social Networks Nodes of individuals or organizations that are connected based on common values, ideas, and friendships. They are based on the idea of six degrees of separation—that each individual is connected to every other individual in the network by up to six other people. Because today’s customer researches brands online and learns about products from other customers in social media, businesses want to join in and influence the conversations. Some social networks are called microblogs, which hold micro content Aim: connecting individuals for business or personal reasons ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Coordinating Internet & Traditional Media IMC Plans
Today, marketers face a mix of owned, paid, and earned media that can carry the promotional tools of advertising, sales promotion, direct marketing, public relations, and personal selling. The guiding force for selecting appropriate tools and media is the communication objectives in desired target markets. Traditional and some internet media carry corporate monologues, while social media contain dialogs with target markets: Both play a role, but the dialog is becoming much more important and is more true to the well-accepted company goal of customer-driven marketing. ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Search Marketing Search marketing is marketing via search engines.
Complex art and science to drive qualified visitors to a Web site and convert them to customers. ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Google Leads With Local Search
©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Search Engine Optimization (SEO)
The process of maximizing the number of visitors to a Web or social media site by ensuring that either: the site name and links appear high on a search engine results page for appropriate key words; or ads on search engine sites get a high click-through SEO’s two types: Natural Search (Organic Search) Paid Search ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Search Engine Optimization, Cont.
Natural Search (Organic Search) A search marketing strategy involving optimizing a Web site so it will appear as close to the first search engine results page as possible Natural search strategies depend on tactics such as site quality, achieving many relevant and high-quality incoming links or on selecting appropriate keywords. When Web sites are optimized for content and meta tags that hold keywords, search engines know how to categorize the site. ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Search Engine Optimization, , Cont.
SEO principles for success Spread fresh content all over the Web Relevance and popularity Optimize content Use a vanity URL Image search Integrate social media and search strategy SEO tactics constantly change ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Search Engine Optimization, Cont.
Vertical Search A site-specific search on very specialized topics, such as travel, online retailers, or books. As compared with general search engines, vertical sites are destinations for fewer users seeking very specific content. Tripadvisor LinkedIn ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Owned Media Performance Metrics
Marketers use Web analytics for company-owned Web sites and blogs such as number of unique visitors, time on each page, or conversion to sales. For owned media, sales promotions, and direct marketing, there are also appropriate metrics. Social media metrics are different from standard Web site metrics because users interact with branded media in many different ways. ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Owned Media Performance Metrics, Cont.
Podcasts: number of downloads and length of time listening. Online events: number of questions asked… Virtual World: number visiting the company property… Online games: number playing… Branded mobile apps: number of downloads, updates and actions. QR Codes: number of scans and actions taken at the site destination. Web landing pages: exit rate, click-through rate… ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Owned Media Performance Metrics, Cont.
Sales Promotion Metrics Marketers need to know how their sales promotions contribute to the overall communication goals. By measuring how customers use and link from their promotions, e-marketers can measure what is working most efficiently. Direct Marketing Metrics Response rate and ROI are the most appropriate metrics for any direct marketing campaign. Many firms use direct tactics to build databases and measure success in terms of customer information growth. ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall ©2014 PEARSON EDUCATION, INC. PUBLISHING AS PRENTICE HALL
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