Exam 4 Study Guide
Exam 4 Study Guide 86498 - MKT 3010 - 006
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86498 - MKT 3010 - 006
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This 19 page Study Guide was uploaded by Alexis Cone on Friday November 27, 2015. The Study Guide belongs to 86498 - MKT 3010 - 006 at Clemson University taught by Amanda Cooper Fine in Spring 2015. Since its upload, it has received 69 views. For similar materials see Principles of Marketing in Marketing at Clemson University.
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Date Created: 11/27/15
Chapter 17 Terms: Integrated Marketing Communications (IMC)- represents the promotion dimension of the four Ps; encompasses a variety of communication disciplines- general advertising, personal selling, sales promotion, public relations, direct marketing, and electronic media- in combination to provide clarity, consistency, and maximum communicative impact Sender- the firm from which an IMC message originates; the sender must be clearly identified to the intended audience Transmitter- an agent or intermediary with which the sender works to develop the marketing communications Encoding- the process of concerting the sender’s ideas into a message, which could be verbal, visual, or both Communication Channel- the medium- print, broadcast, the internet- that carries the message Receiver- the person who reads, hears, or sees and processes the information contained in the message or advertisement Decoding- the process by which the receiver interprets the sender’s message Noise- any interference that stems from competing messages, a lack of clarity in the message, or a flaw in the medium; a problem for all communication channels Feedback Loop- allows the receiver to communicate with the sender and thereby informs the sender whether the message was received and decoded properly AIDA Model- a common model of the series of mental stages through which consumers move as a result of marketing communications: Awareness leads to Interest, which lead to Desire, which leads to Action Brand Awareness- measures how many consumers in a market are familiar with the brand and what it stands for; created through repeated exposures of the carious brand elements in the firm’s communications to consumers Aided Recall-occurs when consumers recognize a name that has been presented to them Top-of-Mind Awareness- a prominent place in a people’s memories that triggers a response without them having to put any thought into it Lagged Effect- a delayed response to a marketing communication campaign Advertising- a paid form of communication from an identifiable source, delivered through a communication channel, and designed to persuade the receiver to take some action, now of in the future Public Relations- the organizational function that manages the firm’s communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavorable stories or events, and maintaining positive relationships with the media Sales Promotions- special incentives of excitement-building programs that encourage the purchase of a product or service, such as coupons, rebates, contests, free samples, and point-of- purchase displays Personal Selling- the two-way flow of communication between a buyer and a seller that is designed to influence the buyer’s purchase decision Direct Marketing- sales and promotional techniques that deliver promotional materials individually Mobile Marketing- marketing through wireless handheld devices Social Media- media content used for social interactions such as YouTube, Facebook, and Twitter Objective-and-Task Method- an IMC budgeting method that determines the cost required to undertake specific tasks to accomplish communication objectives; process entails setting objectives, choosing media, and determining costs Rule-of-Thumb Methods- budgeting methods that base the IMC budget on either the firm’s share of the market in relation to competition, a fixed percentage of forecasted sales, or what is left after other operating costs and forecasted sales have been budgeted Frequency- measure of how often the audience is exposed to a communication within a specified period of time Reach- measure of consumers’ exposure to marketing communications; the percentage of the target population exposed to a specific marketing communication, such as an advertisement, at least once Gross Rating Points (GRP)- measure used for various media advertising- print, radio, or television; GRP=reach X frequency Search Engine Marketing (SEM)- a type of Web advertising whereby companies pay for keywords that are used to catch consumers’ attention while browsing a search engine Impressions- the number of times an advertisement appears in front of the user Click-Through-Rate (CTR)- the number of times a user clicks on an online ad divided by the number of impressions Relevance- in the context of search engine marketing (SEM), it is a metric used to determine how useful an advertisement is to the consumer Return on Investment (ROI)- the amount o profit divided by the value of the investment Videos: Ikea Commercial: example of direct marketing because you can scan a barcode in their catalog onto your phone and see how that item would look in your house Guitar Hero Commercial: Metallica Guitar Hero has four basketball coaches in it and was shown during the Final Four is an example of the communications process Material: IMC represents the promotion part of the four Ps New Communications Realities: o Fragmentation o Information Technology o Model Shift From broadcasting to “narrowcasting”- more inclined to position a product in different ways in different markets The IMC is how firms integrate and coordinate communication channels o The goal is to deliver clear, consistent, and compelling messages o The idea is to try to maximize your communication by utilizing a variety of channels Elements of an IMC Strategy: o Advertising o Sales Promotion o Public Relations o Personal Selling o Direct Marketing Catered to the individual, easily personalizable, growth of data, and new technologies (new channels) Requires more expenditures out of the overall budget, but many firms are moving away from traditional advertising Tools: telephone, mail, catalogs, email, mobile marketing, ect. o Online Marketing Communications Process: o Starts with the sender (the firm) wanting to communicate a message to the consumer, the transmitter encodes the message the firm wants to communicate, communications channel is the media you choose to pitch your message, the receiver is the consumer who decodes the message from the firm o The sender and the transmitter have no control over how the receiver decodes the message o Noise inhibits the receiver from decoding the message in the intended manner AIDA Model: o Awareness Want to gain the attention of your target market so you can go through the rest of the model The more channels you have the easier it is to create awareness Aided Recall: on a multiple-choice test you can see the answer and it triggers your memory Top of Mind Awareness: highest level of awareness o Interest Want consumers to be intrigued about your product o Desire Going from I like or I’m interested in that product to I want the product o Action Consumer purchase o A consumer doesn’t have to go through all the steps in the same order Ex. impulse purchase starts at the action stage o Lagged Effect: people can see an add and be aware of it but don’t always move to the next stage immediately o Fatigued Effect: a negative effect on your brand by advertising and communicating too much Measuring Success: o Frequency: measuring how often a target market is exposed to your communication o Reach: what percentage of the target population that saw a specific add at least once o Gross Rating Points: frequency X reach Marketing Communications Budget: o Rule of Thumb Methods Affordable (available) Method Worst method, but is the easiest to implement Just taking your leftover budget and putting it towards promotion This makes the annual budget really inconsistent and advertising/communications become the last priority Percentage-of-Sales Method Looks at forecasted and current sales Pick a percentage of your sales to become your promotional budget Issue is sales are impacting promotion and how do you determine what percentage to use Competitive Parity Method What does the market/competition spends o Objective-and-Task Method Best method to use Lay out the objectives for the firm for these products Identify the tasks that are the best at accomplishing your objectives Budget is whatever it takes to complete those tasks Search Engine Marketing: o Impressions: number of times an online add appears in front of the user o Click-Through Rate: online measure of reach, number of times your intended market clicks on a link or add divided by the number of impressions o Relevance: when your searching for something, how relevant are the ads that pop up o ROI: (sales revenue – advertising costs)/ advertising cost Chapter 18 Terms: Advertising- a paid form of communication from an identifiable source, delivered through a communication channel, and designed to persuade the receiver to take some action, now or in the future Advertising Plan- a section of the firm’s overall marketing plan that explicitly outlines the objectives of the advertising campaign, how the campaign might accomplish those objectives, and how the firm can determine whether the campaign was successful Pull Strategy- designed to get consumers to pull the product into the supply chain by demanding it Push Strategy- designed to increase demand by motivating sellers- wholesalers, distributors, or salespeople- to highlight the product, rather than the products of competitors, and thereby push the product onto consumers Informative Advertising- communication used to create and build brand awareness, with the ultimate foal of moving the consumer through the buying cycle to a purchase Persuasive Advertising- communication used to motivate consumers to take action Reminder Advertising- communication used to remind consumers of a product of to prompt repurchases, especially for product that have gained market acceptance and are in the maturity stage of their life cycle Product-Focused Advertisements- used to inform, persuade, or remind consumers about a specific product or service Institutional Advertisements- a type of advertisement that informs, persuades, or reminds consumers about issues related to places, politics, or an industry Public Service Advertising- advertising that focuses on public welfare and generally is sponsored by nonprofit institutions, civic groups, religious organizations, trade associations, or political groups; a form of social marketing Social Marketing- the content distributed through online and mobile technologies to facilitate interpersonal interactions Unique Selling Proposition (USP)- a strategy of differentiating a product by communicating its unique attributes; often becomes the common theme or slogan in the entire advertising campaign Informational Appeals- used in a promotion to help consumers make purchase decisions by offering factual information and strong arguments built around relevant issues that encourage them to evaluate the brand favorably on the basis of the key benefits it provides Emotional Appeal- aims to satisfy consumers’ emotional desire rather than their utilitarian needs Media Planning- the process of evaluating and selecting the media mix that will deliver a clear, consistent, compelling message to the intended audience Media Mix- the combination of the media used and the frequency of advertising in each medium Media Buy- the actual purchase of airtime or print pages Mass Media- channels that are ideal for reaching large numbers of anonymous audience members; include national newspapers, magazines, radio, and television Mass Media- channels that are ideal for reaching large numbers of anonymous audience members; include national newspapers, magazines, radio, and television Niche Media- channels that are focused and generally used to reach narrow segments, often with unique demographic characteristics or interests Advertising Schedule- the specification of the timing and duration of advertising Continuous Schedule- runs steadily throughout the year and therefore is suited to products and services that are consumed continually at relatively steady rates and that require a steady level of persuasive or reminder advertising Flighting- an advertising schedule implemented in spurts, with periods of heavy advertising followed by periods or no advertising Pulsing- combines the continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods Pretesting- assessments performed before an ad campaign is implemented to ensure that the various elements are working in an integrated fashion and doing what they are intended to do Tracking- includes monitoring key indicators, such as daily or weekly sales volume, while the advertisement is running to shed light on any problems with the message or the medium Posttesting- the evaluation of an IMC campaign’s impact after it has been implemented Lift- additional sales caused by advertising Puffery- the legal exaggeration of praise, stopping just short of deception, lavished on a product Public Relations (PR)- the organizational function that manages the firm’s communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavorable stories or events, and maintaining positive relationships with the media Cause-Related Marketing- commercial activity in which businesses and charities form a partnership to market an image, a product, or a service for their mutual benefit; a type of promotional campaign Event Sponsorship- popular PR tool; occurs when corporations support various activities, usually in the cultural or sports and entertainment sectors Sales Promotions- special incentives or excitement-building programs that encourage the purchase of a product or service, such as coupons, rebates, contests, free samples, and point-of- purchase displays Premium- an item offered for a free or at a bargain price to reward some type of behavior, such as buying, sampling, or testing Loyalty Programs- specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time Point-of-Purchase (POP) Displays- a merchandise display located at the point of purchase, such as at the checkout counted in a grocery store Product Placement- inclusion of a product in nontraditional situations, such as in a scene in a movie or television program Cross-Promoting- efforts of two or more firms joining together to reach a specific target market Videos: Derren Brown Video: about how we see advertising and maybe we don’t think directly about it, but it’s in the back of your mind Smokey the Bear commercials and High Fructose Corn Syrup commercials are examples of public service advertising Ford F-150 commercial is an example of an informational appeal because it states specific facts about why a consumer would want to buy this truck Publix commercial is an example of an emotional appeal because its based on pulling on people’s emotions instead of we have better prices or products Dominos commercial about puffery Material: Advertising is a paid form of communication from an identifiable source, delivered through a communication channel, and designed to persuade the receiver to take some action, now or in the future Word or mouth marketing is not a form of advertising because it isn’t paid for Planning an Ad Campaign: o 1. Identify a target audience The target audience dictates the tome of the message, the target market, and the media selection o 2. Set advertising objectives Clarify goals Overall objective: idea is to ultimately get consumers to take action Do you want to: o Inform o Persuade o Remind Focus: Product-Focused: specific product or specific brand Institutional (public service advertising): focus on public welfare and the betterment of society, remind consumers of things that relate to a place, industry, or politics o 3. Determine the advertising budget Advertising is typically the largest expenditure in the budget Considerations: Role: what is your advertising supposed to do Where are you in the product life cycle Nature of the market (competition) and the product itself (do people know it, use it often, need to learn about it) o 4. Convey the message Key message Problem-solving ability Unique Selling Proposition o Differentiation factor o Tag line, music, ect. o Want something that will stand the test of time Appeals: Framework of the message Type of appeal is based on the target market Informational Appeals: consumers have cognitive rational thoughts Emotional Appeals: for consumers who don’t need rational facts o 5. Evaluate and select media Usually the most expensive step Media planning Media mix What kind and how much of ads are you buying Media buy Mass media vs. Niche media o Niche media is more segmented markets (narrowcasting) Determining the advertising schedule Continuous Flighting o There are certain times of intense advertising Pulsing o Continuous peaks and valleys of advertising year round o 6. Create the message Message translation Type of medium dictates how the ad is executed Creativity o Make sure your message has been translated in a creative way, but sill encompasses the actual company Objective o 7. Assess impact Pretesting: get a lay of the land before the ad campaign goes out Tracking: done during the ad campaign Posttesting: what is the lasting impact of the ad campaign once its over FCC- Federal Communications Commission o Regulate PSAs and intercontinental communications in terms of what is allowed for free speech, censorship, ect. Puffery is legal exaggeration o Based on opinion not fact FTC regulates things that relate to consumer protection law, tries to make sure advertising is truthful Public Relations (PR) is “free” media attention o Tools: news releases, annual reports, brochures, PSAs, press kits, event sponsorship (this part isn’t really free), ect. Sales promotions are special incentives, excitement-building programs, ect. o Can be geared toward the end consumer of channel members o The key is that they are short term o Effective if done properly o Tools: discounts, coupons, POP (point of purchase) displays, demonstrations, premiums (giveaways), contests, sweepstakes, rebates, sampling, pop-up stores, cross- promoting, ect. Chapter 3 Terms: Social Media- media content used for social interactions such as YouTube, Facebook, and Twitter Creators- hip, cool, contributors who sit at the cutting edge and plan to stay there Bonders- social butterflies who use social media to enhance and expand their relationships, which they consider all-important in their lives Professionals- people who are constantly on the go, busy, and want to appear efficient, with everything together, so they use social media to demonstrate just how smart they are Sharers- a type of consumer that uses social media sites and wants to help by being constantly well informed, so that they can provide genuine insights to others Gamification- the process of building customer loyalty through the offering of free apps Sentiment Analysis- a technique that allows marketers to analyze data from social media sites to collect consumer comments about companies and their products Hits- a request for a file made by web browsers and search engines Page Views- the number of times and Internet page gets viewed by any visitor Bounce Rate- the percentage of times a visitor leaves the website almost immediately, such as after viewing only one page Click Paths- shows how users proceed through the information on a website- not unlike how grocery stores try to track the way shoppers move through their aisles Conversion Rates- percentage of consumers who buy a product after viewing it Keyword Analysis- an evaluation of what keywords people use to search on the Internet for their products and services Social Reach- a metric used to determine how many people a person influences Influence- in a social media context, the extent to which the person influences others Extended Network- in social media, it is the total number of people a person or entity reaches or has influence over Videos: NASCAR video: NASCAR created a fan and media engagement center that is an example of the social engagement process 60 Minutes- Data Brokers: shows how much information 3 party rd cources can gain about you from the internet Material: Social media is content distributed through online and mobile technologies o Interpersonal interactions: social media helps to build connections between two that can lead to relationships o Share information o Clear call to actions o Tools: social network sites, media-sharing sites (Instagram), thought-sharing sites (Twitter) 4E Framework: o Excite Segmentation is key to keep things relevant to the consumer There is information to gain o Educate Can provide new information or remind consumers about your product o Experience People can share their individual experience with the product o Engage Have a touch point with your customer in order to help build a positive relationship Social Engagement Process: o Listen About reading and analyzing information Learning about customers based on what they post online o Analyze Traffic: where are people going, what are the gravitating toward Look at page views per customer, hits on a website, ect. Customer tracking: conversion rates (when you actually buy something), click paths (what links you click on), ect. Keyword analysis o Do How do you take advantage of this? What are your strategies? Metrics: o Social reach: how many people do you influence (your social network- how many people do you follow, how many people follow you) o Influence: how many people are actually engaged with you online o Extended network: your friend’s friends Chapter 19 Terms: Personal Selling- the two-way flow of communication between a buyer and a seller that is designed to influence the buyer’s purchase decisions Relationship Selling- a sales philosophy and process that emphasizes a commitment to maintaining the relationship over the long term and investing in opportunities that mutually beneficial to all parties Leads- a list of potential customers Qualify- the process of assessing the potential of sales leads Trade Shows- major events attended by buyers who choose to be exposed to products and services offered by potential supplies in an industry Cold Calls- a method of prospecting in which salespeople telephone or go to see potential customers without appointments Telemarketing- a method of prospecting in which salespeople telephone potential customers Preapproach- in the personal selling process, occurs prior to meeting the customer for the first time and extends the qualifications of leads procedure; in this step the salesperson conducts additional research and develops plans for meeting with the customer Role Playing- a good technique for practicing the sales presentation prior to meeting with a customer; the salesperson acts out a simulated buying situations while a colleague or manager acts as the buyer Closing the Sale- obtaining a commitment form the customer to make a purchase Sales Management- involves the planning direction, and control of personal selling activities, including recruiting, selecting, training, motivating, compensating, and evaluating, as they apply to the sales force Company Sales Force- comprised of people who are employees of the selling company and are engaged in the selling process Independent Agents- salespeople who sell a manufacturer’s products on an extended contract basis but are not employees of the manufacturer; also known as manufacturer’s representatives or reps Order Getter- a salesperson whose primary responsibilities are identifying potential customers in discussions to attempt to make a sale Order Taker- a salesperson whose primary responsibility is to process routine orders or reorders or rebuys for products Sales Support Personnel- employees who enhance and help with a firm’s overall selling effort, such as by responding to the customer’s technical questions or facilitating repairs Selling Teams- combination of sales specialists whose primary duties are order getting, order taking, or sales support but who work together to service important accounts Salary- compensation in the form of a fixed sum of money paid at regular intervals Commission- compensation or financial incentive for salespeople based on a fixed percentage of their sales Bonus- a payment made at management’s discretion when the salesperson attains certain goals; usually given only periodically, such as at the end of the year Sales Contest- a short-term incentive designed to elicit a specific response from the sales force Material: Personal selling is the two-way flow of communication between a buyer/buyers and a seller, designed to influence the buyer/buyers purchasing decision o Personal selling can take place face-to-face, via video teleconferencing, on the phone, over the Internet, ect. People choose personal selling as a career because of the lifestyle, variety, lucrative, and visible o Lifestyle- salespeople are typically out on their own and are responsible for planning their own day (flexible) o Variety- everyday is different o Lucrative- sales is among the highest-paying careers for college graduates o Visible- their performance is fairly straightforward to measure by management Value added by personal selling: o Salespeople provide information and advice o Salespeople save time and simplify buying o Salespeople build relationships Personal Selling Process: Generate and qualify leads o Source of leads: Current customers Networking Internet Trade shows Cold calls Telemarketing o Qualify your leads: Not all leads are good leads Making sure this is actually a viable customer Preapproach o Prior to meeting the customer o Extend qualifications o Set goals Sales presentation and overcoming reservations o Presentation- some sort of one-on-one meeting o Handling reservations/objections Closing the sale o Order o Stress o No Yes Follow-up o Five service quality dimensions: Reliability Responsiveness Assurance Empathy Tangibles Sales Management: o Sales force structure: Sales management Sales managers are in charge of planning, recruiting, training, motivating, evaluations, ect. Company sales force- when the sales stagg is internal to the firm Manufacturer’s representative- group or individual hired by the firm to sell on the firm’s behalf, but aren’t actually employees of the firm Salesperson duties- order getter, order taker, sales support o Recruiting and selecting salespeople: Traits-personality, optimism, resilience, self- motivation, empathy o Sales training: Selling and negotiating techniques, product and service knowledge, technology, time and territory management, and company policies and procedures o Motivating and compensating salespeople Financial rewards Nonfinancial rewards Evaluating salespeople Reward structure Objective and subjective Ethical and legal issues involved in personal selling: o The sales manager and sales force: the sales manager legally cannot discriminate on race, gender, ect. o The sales force and corporate policy: sometimes corporate policy asks the sales force to do illegal things o The salesperson and the customer: does the salesperson not disclose necessary information Chapter 8 Terms: Globalization- refers to the processes by which foods, services, capital, people, information, and ideas flow across national borders Trade Deficit- results when a country imports more goods than it exports Trade Surplus- occurs when a country has a higher level of exports than imports Gross Domestic Product (GDP)- defined as the market value of the goods and services produced by a country in a year; the most widely used standardized measure of output Gross National Income (GNI)- consists of GDP plus the net income earned form investments abroad (minus any payments made to nonresidents who contribute to the domestic economy) Infrastructure- the basic facilities, services, and installations needed for a community or society to function, such as transportation and communications systems, water and power lines, and public institutions like schools, post offices, and prisons Tariff- a tax levied on a good imported into a country; also called a duty Quota- designates the maximum quantity of a product that may be brought into a country during a specified time period Exchange Rate- the measure of how much one currency is worth in relation to another Trade Agreements- intergovernmental agreements designed to manage and promote trade activities for specific regions Trading Bloc- consists of those countries that have signed a particular trade agreement Exporting- producing goods in one country and selling them in another Franchising- a contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor Strategic Alliances- a collaborative relationship between independent firms, though the partnering firms do not create an equity partnership; that is, they do not invest in one another Joint Venture- formed when a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shared Direct Investment- when a firm maintains 100 percent ownership of its plans, operation facilities, and offices in a foreign country, often through the formation of wholly owned subsidiaries Glocalization- the process of firms standardizing their products globally, but using different campaigns to sell them Reverse Innovation- when companies initially develop products for niche or underdeveloped markets, and then expand them into their original or home markets Material: Assessment of global environment: o Intense competition o Aggressive expansion o Risky to ignore growing markets and not recognize new competitors Global firm is one operating in more than one country Assessing a country’s market: Economic analysis o General economic environment Trade deficit vs. trade surplus Gross domestic product o Market size and population growth rate As well as where are the people located o Evaluating real income How far does the dollar go in the local economy Infrastructure and technology o Transportation system o Overall distribution channels o Communication systems o Commerce Government actions o Tariff o Quota Limits the amount of imported goods brought in at one time c. Trade agreements Sociocultural analysis o Power distance- is inequality natural and normal or are people equal o Uncertainty avoidance- how formalized are day to day lives o Masculinity- can women hold positions of power, receive the same pay as men, lead large companies, ect. o Time orientation Global entry strategies: Exporting o Least risky o To see if there is demand for your product, build awareness and reputation Franchising Strategic alliance o Variety of firms who remain independent but work together to serve customers internationally Joint venture o Share ownership Direct investment o Most risky o Own 100% outright When looking at a Global STP its important to keep in mind cultural nuances, subcultures, and that the definition of a consumer can vary Global product/service strategies: o Straight product/service extension- standardizing no matter where the market is o Product adaptation- take a product and alter it a little bit to fit the new market o Product invention- create a brand new product for this new market Global pricing strategies: o Legislation o Economic conditions o Competitive factors Who is it and what are the price points Whole channel view: o Seller’s HQ channels between nations o Channels within nations o Intermediaries Numbers and types o Retail units abroad Size and characteristics Global communications strategies: o Literacy o Language o Culture and religion Chapter 4 Terms: Business Ethics- refers to a branch of ethical study that examines ethical rules and principles within a commercial context, the various moral or ethical problems that might arise in a business setting, and any special duties or obligations that apply to persons engaged in commerce Marketing Ethics- refers to those ethical problems that are specific to the domain of marketing Ethical Climate- the set of values within a marketing firm, or in the marketing division of any firm, that guide decision make and behavior Corporate Social Responsibility- refers to the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders Locational Privacy- a person’s ability to move normally in public spaces with the expectation that his or her location will not be recorded for subsequent use Material: Corporate social responsibility refers to the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders CSR Issues: o Employees- safe working environment o Customers- protecting privacy o Marketplace- global warming, water scarcity and energy o Society- improving the overall community Cultural imperialism is a large and powerful country having great influences on a less powerful country
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