Marketing and Sales in Business
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AI Summary
This assignment delves into the crucial distinctions between marketing and sales within a business context. While both contribute to revenue generation, they operate with separate focuses: marketing focuses on creating awareness and generating leads, while sales converts those leads into paying customers. The document emphasizes their interdependence and how effective collaboration between these departments streamlines the buying process for enhanced business outcomes.
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PRINCIPLE OF BUSINESS
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1.1 Characteristics of different markets..................................................................................1
1.2 Nature of interactions between businesses.......................................................................1
1.3 Explain organisational goals may be shaped by the market.............................................2
1.4 Legal obligations of business...........................................................................................2
2.1 Business Innovation..........................................................................................................2
2.2 Uses of model of business innovation..............................................................................3
2.3 Sources of support and guidance for business innovation................................................3
2.4 Process of product development.......................................................................................3
2.5 Benefits, risks and implications associated with innovation............................................4
3.1 Importance of financial viability......................................................................................5
3.2 Consequences of poor financial management..................................................................5
3.3 Different financial terminology........................................................................................5
4.1 Uses of budget..................................................................................................................5
4.2 How to manage budget.....................................................................................................6
5.1 Principles of marketing ....................................................................................................6
5.2 Explain sales process........................................................................................................7
5.3 Features and uses of market research...............................................................................7
5.4 Explain value of brand .....................................................................................................7
5.5 Relationship between sales and marketing.......................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
INTRODUCTION...........................................................................................................................1
1.1 Characteristics of different markets..................................................................................1
1.2 Nature of interactions between businesses.......................................................................1
1.3 Explain organisational goals may be shaped by the market.............................................2
1.4 Legal obligations of business...........................................................................................2
2.1 Business Innovation..........................................................................................................2
2.2 Uses of model of business innovation..............................................................................3
2.3 Sources of support and guidance for business innovation................................................3
2.4 Process of product development.......................................................................................3
2.5 Benefits, risks and implications associated with innovation............................................4
3.1 Importance of financial viability......................................................................................5
3.2 Consequences of poor financial management..................................................................5
3.3 Different financial terminology........................................................................................5
4.1 Uses of budget..................................................................................................................5
4.2 How to manage budget.....................................................................................................6
5.1 Principles of marketing ....................................................................................................6
5.2 Explain sales process........................................................................................................7
5.3 Features and uses of market research...............................................................................7
5.4 Explain value of brand .....................................................................................................7
5.5 Relationship between sales and marketing.......................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
INTRODUCTION
Principles of business is much important concept in the organisation. The report deals
with various principles which are essential for business to carry out tasks in effective way.
1.1 Characteristics of different markets
Monopoly market
Unique goods
Monopoly market producing unique goods, there does not have close substitutes in the
market place. Monopoly market is freedom to change the cost of the goods or services. Example
of Windows company, they are using their own idea to form their own goods and service, which
is Microsoft. There do not have any other substitutes in this market (Burgstahler, 2015).
Perfect competition market
Homogeneity of the Product:
Each firm should produce and sell a homogeneous product so that no buyer has any preference
for the product of any individual seller over others. If goods will be homogeneous then price will
also be uniform everywhere.
Oligopoly market
Interdependence:
The foremost characteristic of oligopoly is interdependence of the various firms in the decision
making.
1.2 Nature of interactions between businesses
The interactions between businesses within a business market will depend upon a variety of
factors, including:
1. Buying decisions
2. The buying process, and who participates in the buying process
3. Influences upon buyers
4. How businesses make their buying decisions
1
Principles of business is much important concept in the organisation. The report deals
with various principles which are essential for business to carry out tasks in effective way.
1.1 Characteristics of different markets
Monopoly market
Unique goods
Monopoly market producing unique goods, there does not have close substitutes in the
market place. Monopoly market is freedom to change the cost of the goods or services. Example
of Windows company, they are using their own idea to form their own goods and service, which
is Microsoft. There do not have any other substitutes in this market (Burgstahler, 2015).
Perfect competition market
Homogeneity of the Product:
Each firm should produce and sell a homogeneous product so that no buyer has any preference
for the product of any individual seller over others. If goods will be homogeneous then price will
also be uniform everywhere.
Oligopoly market
Interdependence:
The foremost characteristic of oligopoly is interdependence of the various firms in the decision
making.
1.2 Nature of interactions between businesses
The interactions between businesses within a business market will depend upon a variety of
factors, including:
1. Buying decisions
2. The buying process, and who participates in the buying process
3. Influences upon buyers
4. How businesses make their buying decisions
1
1.3 Explain organisational goals may be shaped by the market
Feasibility
A goal that is too easy to reach can give you a premature sense of accomplishment, while a goal
that is too difficult to attain can cause an unnecessary drain on resources. The feasibility of a goal
has a significant effect on its benefit to your organization. Use historical data, current market
trends and an analysis of your company resources to develop realistic goals that will help you
grow your company without putting yourself out of business.
Time Frame
The methods you will use to attain a specific business goal will depend on the time you give
yourself to complete it. A goal with a more extended time frame may be more costly but may
ultimately yield greater returns than one with an immediate deadline. But a shorter duration can
allow you to experiment with new business ideas while limiting their potential negative effects
(Fafaliou and Donaldson, 2015).
1.4 Legal obligations of business
Legal: Liability or duty to do something or refrain from doing something under the terms
of a contract, such as the obligation of a borrower (the obligor) to pay back the lender (the
obligee) under the terms of the loan agreement. Obligations usually involve a penalty for self-
fulfilment. Legal Requirements. Safety, Health and Welfare at Work Act 2005 (No. 10 of 2005)
requires: Employers manage and conduct their work activities in such a manner as to ensure the
safety, health and welfare of employees. That a risk assessment is carried out by the employer or
person in control of the place of work.
2.1 Business Innovation
Business innovation is an organization's process for introducing new ideas, workflows,
methodologies, services or products (Filippatos and Elisaf, 2016).
Like IT innovation, which calls for using technology in new ways to create a more efficient and
agile organization, business innovation should enable the achievement of goals across the entire
organization, with sights set on accomplishing core business aims and initiatives. Innovation
often begins with idea generation, wherein ideas are narrowed down during brainstorming
2
Feasibility
A goal that is too easy to reach can give you a premature sense of accomplishment, while a goal
that is too difficult to attain can cause an unnecessary drain on resources. The feasibility of a goal
has a significant effect on its benefit to your organization. Use historical data, current market
trends and an analysis of your company resources to develop realistic goals that will help you
grow your company without putting yourself out of business.
Time Frame
The methods you will use to attain a specific business goal will depend on the time you give
yourself to complete it. A goal with a more extended time frame may be more costly but may
ultimately yield greater returns than one with an immediate deadline. But a shorter duration can
allow you to experiment with new business ideas while limiting their potential negative effects
(Fafaliou and Donaldson, 2015).
1.4 Legal obligations of business
Legal: Liability or duty to do something or refrain from doing something under the terms
of a contract, such as the obligation of a borrower (the obligor) to pay back the lender (the
obligee) under the terms of the loan agreement. Obligations usually involve a penalty for self-
fulfilment. Legal Requirements. Safety, Health and Welfare at Work Act 2005 (No. 10 of 2005)
requires: Employers manage and conduct their work activities in such a manner as to ensure the
safety, health and welfare of employees. That a risk assessment is carried out by the employer or
person in control of the place of work.
2.1 Business Innovation
Business innovation is an organization's process for introducing new ideas, workflows,
methodologies, services or products (Filippatos and Elisaf, 2016).
Like IT innovation, which calls for using technology in new ways to create a more efficient and
agile organization, business innovation should enable the achievement of goals across the entire
organization, with sights set on accomplishing core business aims and initiatives. Innovation
often begins with idea generation, wherein ideas are narrowed down during brainstorming
2
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sessions, after which leaders consider the business viability, feasibility and desirability of each
idea. Business innovation should improve on existing products, services or processes; or it
should solve a problem; or it should reach new customers.
2.2 Uses of model of business innovation
Business model innovation is the development of new, unique concepts supporting an
organization's financial viability, including its mission, and the processes for bringing those
concepts to fruition. Depending on your industry and nature of activities, resource efficiency can
be embedded in business model in different ways. You may also have varying degrees of
freedom to drive change depending on access to enabling infrastructure and technologies,
regulatory constraints, and the ‘resource consciousness’ of your customers. All these aspects
need to be understood and factored into your understanding and planning (Gupta, Garcia and
Ugalde, 2017).
2.3 Sources of support and guidance for business innovation
Company research and development professionals and accountants will want to ensure
that their businesses are making full use of the extensive range of government support available
for businesses undertaking and innovation. This support helps companies to develop the new
products and services they need to remain competitive and grow.
The Patent Box enables companies to apply for a lower rate of Corporation Tax on profits
earned after 1 April 2013 on patented inventions and certain other innovations. This relief is
being phased in from 1 April 2013. The lower rate of Corporation Tax will be 10%.
2.4 Process of product development
1. Idea generation– brainstorming and coming up with innovative new ideas.
2. Idea evaluation - filtering out any ideas not worth taking forward.
3. Testing- considering specifications such as technical feasibility, product design and market
potential.
4. Strategic analysis - ensuring your ideas fit into your business' strategic plans and determining
the demand, the costs and the profit margin.
3
idea. Business innovation should improve on existing products, services or processes; or it
should solve a problem; or it should reach new customers.
2.2 Uses of model of business innovation
Business model innovation is the development of new, unique concepts supporting an
organization's financial viability, including its mission, and the processes for bringing those
concepts to fruition. Depending on your industry and nature of activities, resource efficiency can
be embedded in business model in different ways. You may also have varying degrees of
freedom to drive change depending on access to enabling infrastructure and technologies,
regulatory constraints, and the ‘resource consciousness’ of your customers. All these aspects
need to be understood and factored into your understanding and planning (Gupta, Garcia and
Ugalde, 2017).
2.3 Sources of support and guidance for business innovation
Company research and development professionals and accountants will want to ensure
that their businesses are making full use of the extensive range of government support available
for businesses undertaking and innovation. This support helps companies to develop the new
products and services they need to remain competitive and grow.
The Patent Box enables companies to apply for a lower rate of Corporation Tax on profits
earned after 1 April 2013 on patented inventions and certain other innovations. This relief is
being phased in from 1 April 2013. The lower rate of Corporation Tax will be 10%.
2.4 Process of product development
1. Idea generation– brainstorming and coming up with innovative new ideas.
2. Idea evaluation - filtering out any ideas not worth taking forward.
3. Testing- considering specifications such as technical feasibility, product design and market
potential.
4. Strategic analysis - ensuring your ideas fit into your business' strategic plans and determining
the demand, the costs and the profit margin.
3
5. Product development and testing - creating a prototype product or pilot service.
6. Market testing - modifying the product or service according to customer, manufacturer and
support organisations' feedback. This involves deciding the best timing and process for piloting
your new product or service.
7. Commercialisation – determining the pricing for your product or service and finalising
marketing plans.
8. Product launch – a detailed launch plan can help ensure smooth introduction to market.
2.5 Benefits, risks and implications associated with innovation
BENEFITS OF INNOVATION
Improved productivity & reduced costs
A lot of process innovation is about reducing unit costs. This might be achieved by improving
the production capacity and/or flexibility of the business – to enable it to exploit economies of
scale
Better quality
By definition, better quality products and services are more likely to meet customer needs.
Assuming that they are effectively marketed, that should result in higher sales and profits.
(Hiscox, 2015)
Uncertain commercial returns
Much research is speculative and there is no guarantee of future revenues and profits. The longer
the development timescale the greater the risk that research is overtaken by competitors too.
Availability of finance
Like other business activities, R&D has to compete for scarce cash. Given the risks involved,
R&D demands a high required rate of return.
3.1 Importance of financial viability
Finance refers to sources of money for a business. Firms need finance to: Start up
a business, eg pay for premises, new equipment and advertising. Run the business, eg having
4
6. Market testing - modifying the product or service according to customer, manufacturer and
support organisations' feedback. This involves deciding the best timing and process for piloting
your new product or service.
7. Commercialisation – determining the pricing for your product or service and finalising
marketing plans.
8. Product launch – a detailed launch plan can help ensure smooth introduction to market.
2.5 Benefits, risks and implications associated with innovation
BENEFITS OF INNOVATION
Improved productivity & reduced costs
A lot of process innovation is about reducing unit costs. This might be achieved by improving
the production capacity and/or flexibility of the business – to enable it to exploit economies of
scale
Better quality
By definition, better quality products and services are more likely to meet customer needs.
Assuming that they are effectively marketed, that should result in higher sales and profits.
(Hiscox, 2015)
Uncertain commercial returns
Much research is speculative and there is no guarantee of future revenues and profits. The longer
the development timescale the greater the risk that research is overtaken by competitors too.
Availability of finance
Like other business activities, R&D has to compete for scarce cash. Given the risks involved,
R&D demands a high required rate of return.
3.1 Importance of financial viability
Finance refers to sources of money for a business. Firms need finance to: Start up
a business, eg pay for premises, new equipment and advertising. Run the business, eg having
4
enough cash to pay staff wages and suppliers on time. Budgeting is the area of financial
management that involves planning for typical and atypical expenses. It is the process of
deciding the best time to make a particular purchase based on the amount of money your
business is currently earning and your expectations about how much it will earn in the future.
Sound budgeting is important because it enables your business to approach financial decisions
with sound information and sufficient resources (James and Maples, 2016).
3.2 Consequences of poor financial management
Poor financial management is patchy financial planning, chaotic bookkeeping,
overinvestment (buying too much too early), and lacking any reserves. The latter could see your
business flounder as soon as you need to make an unexpected outlay or you have a quiet period.
The consequences of poor financial management for your business are clear: you may struggle to
pay your bills, get into debt, and eventually be forced to shut your business down.
3.3 Different financial terminology
1. Accounting Close- This is when the “books” are closing and the numbers are being tabulated
in the financial statements for the prior period. Normally this happens in the first week of the
month.
2. Accrual- An estimate intended to capture the cost of a good or service in the absence of an
invoice. The estimate is done at quarter-end so the benefits of goods and services received is
matched with the cost to the company.
3. Addition to Owners Equity -Net Income less Dividends
4.1 Uses of budget
1. Track Expenses
It is easy to forget where you spent that extra money last month or realize just how much
you are spending on certain expenses. Budgeting allows you to see these facts in black and
white.
2. Reach Goals
Without a budget, you have no way of really knowing where each penny is going each
month. Whether you have your sights set on a new house or a car, planning ahead for such
5
management that involves planning for typical and atypical expenses. It is the process of
deciding the best time to make a particular purchase based on the amount of money your
business is currently earning and your expectations about how much it will earn in the future.
Sound budgeting is important because it enables your business to approach financial decisions
with sound information and sufficient resources (James and Maples, 2016).
3.2 Consequences of poor financial management
Poor financial management is patchy financial planning, chaotic bookkeeping,
overinvestment (buying too much too early), and lacking any reserves. The latter could see your
business flounder as soon as you need to make an unexpected outlay or you have a quiet period.
The consequences of poor financial management for your business are clear: you may struggle to
pay your bills, get into debt, and eventually be forced to shut your business down.
3.3 Different financial terminology
1. Accounting Close- This is when the “books” are closing and the numbers are being tabulated
in the financial statements for the prior period. Normally this happens in the first week of the
month.
2. Accrual- An estimate intended to capture the cost of a good or service in the absence of an
invoice. The estimate is done at quarter-end so the benefits of goods and services received is
matched with the cost to the company.
3. Addition to Owners Equity -Net Income less Dividends
4.1 Uses of budget
1. Track Expenses
It is easy to forget where you spent that extra money last month or realize just how much
you are spending on certain expenses. Budgeting allows you to see these facts in black and
white.
2. Reach Goals
Without a budget, you have no way of really knowing where each penny is going each
month. Whether you have your sights set on a new house or a car, planning ahead for such
5
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expenses can help you reach your goals sooner (Juárez, 2014). Set a time line in order to buy the
item and determine a realistic amount to set aside each month in order to afford it
4.2 How to manage budget
Regularly re-assess your budget
Finally, the key to managing your budget successfully is to ensure you revisit it – and
revise it – on a regular basis. As your personal circumstances change, your budget will need to
be amended, too.
Getting a promotion or pay rise should mean you rework your budget. While it may seem
like an opportunity to loosen up your purse strings slightly, failing to take account of an income
rise in your budget could mean you spend it indiscriminately and don’t truly make the most of it
5.1 Principles of marketing
Product
The product is the core of any business. If there is no relevant product, good or service,
and no need for it, there is no business. The structure and characteristics of the product are
important in the marketing mix and must be distinct from the competition (Kline, 2015).
Promotion
The second principle is promotion. Having the perfect product is of no significance if no
one knows your product exists. Promotion is the process of communicating to a targeted
audience a product's benefits and availability.
Price
The third principle is price. Pricing the product correctly plays a significant role in the
marketing mix.
Place
Where a consumer can actually get the product is key. If the product or service cannot be
conveniently acquired, a consumer may purchase from the competition.
6
item and determine a realistic amount to set aside each month in order to afford it
4.2 How to manage budget
Regularly re-assess your budget
Finally, the key to managing your budget successfully is to ensure you revisit it – and
revise it – on a regular basis. As your personal circumstances change, your budget will need to
be amended, too.
Getting a promotion or pay rise should mean you rework your budget. While it may seem
like an opportunity to loosen up your purse strings slightly, failing to take account of an income
rise in your budget could mean you spend it indiscriminately and don’t truly make the most of it
5.1 Principles of marketing
Product
The product is the core of any business. If there is no relevant product, good or service,
and no need for it, there is no business. The structure and characteristics of the product are
important in the marketing mix and must be distinct from the competition (Kline, 2015).
Promotion
The second principle is promotion. Having the perfect product is of no significance if no
one knows your product exists. Promotion is the process of communicating to a targeted
audience a product's benefits and availability.
Price
The third principle is price. Pricing the product correctly plays a significant role in the
marketing mix.
Place
Where a consumer can actually get the product is key. If the product or service cannot be
conveniently acquired, a consumer may purchase from the competition.
6
5.2 Explain sales process
In simple terms, a sales process is a systematic approach involving a series of steps that
enables a sales force closing more deals, increase margins and make more sales through referrals.
Selling involves the interaction between a potential customer and a sales professional, who
attempts to persuade the potential customer to purchase his company's product. Selling is
a process with distinct steps that should be followed in order to achieve success.
5.3 Features and uses of market research
Adapt one’s strategy, that is to say adapting the product range, the communications'
strategy, the pricing policy and the choice of the site in relation to the market research results.
Professionalise the setting-up approach and convince financial partners and others to get
involved.
Estimate the turnover of the future organisation (Marume and et.al, 2016).
And finally to be able to decide whether or not to launch your business.
5.4 Explain value of brand
1. Financial accounting purposes- Financial accounting requirements come into play when a
trademark is acquired in a business combination.
2. Tax compliance purposes- Establishing the tax basis in transactions involving the sale or
transfer of trademarks.
3. Transactional purposes- A buyer may want an independent valuation of a trademark or a
lender may require the valuation of a trademark before it can be pledged as collateral for a loan.
5.5 Relationship between sales and marketing
Many outside of the selling process look at marketing and sales as the same thing: the
same service, the same department, the same work. They aren't the same, however. Though
interrelated, marketing and sales are two different disciplines and areas of the business process
(Organ and et.al, 2014).
The simplified version: the marketing team pre-qualifies, so the sales team can follow real leads.
Together, they streamline the buying and selling process.
7
In simple terms, a sales process is a systematic approach involving a series of steps that
enables a sales force closing more deals, increase margins and make more sales through referrals.
Selling involves the interaction between a potential customer and a sales professional, who
attempts to persuade the potential customer to purchase his company's product. Selling is
a process with distinct steps that should be followed in order to achieve success.
5.3 Features and uses of market research
Adapt one’s strategy, that is to say adapting the product range, the communications'
strategy, the pricing policy and the choice of the site in relation to the market research results.
Professionalise the setting-up approach and convince financial partners and others to get
involved.
Estimate the turnover of the future organisation (Marume and et.al, 2016).
And finally to be able to decide whether or not to launch your business.
5.4 Explain value of brand
1. Financial accounting purposes- Financial accounting requirements come into play when a
trademark is acquired in a business combination.
2. Tax compliance purposes- Establishing the tax basis in transactions involving the sale or
transfer of trademarks.
3. Transactional purposes- A buyer may want an independent valuation of a trademark or a
lender may require the valuation of a trademark before it can be pledged as collateral for a loan.
5.5 Relationship between sales and marketing
Many outside of the selling process look at marketing and sales as the same thing: the
same service, the same department, the same work. They aren't the same, however. Though
interrelated, marketing and sales are two different disciplines and areas of the business process
(Organ and et.al, 2014).
The simplified version: the marketing team pre-qualifies, so the sales team can follow real leads.
Together, they streamline the buying and selling process.
7
CONCLUSION
Hereby it can be concluded that business principles are of utmost important to
stakeholders. Business innovation also plays essential role.
8
Hereby it can be concluded that business principles are of utmost important to
stakeholders. Business innovation also plays essential role.
8
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REFERENCES
Burgstahler, S. E., 2015. Universal design in higher education: From principles to practice.
Harvard Education Press. 8 Story Street First Floor, Cambridge, MA 02138.
Fafaliou, I. and Donaldson, J., 2015. Principles of administration revisited.
Filippatos, T. D. and Elisaf, M. S., 2016. Basic principles of fluid administration. Evidence-
based Medicine & Public Health. 2.
Gupta, A, Garcia, C. and Ugalde, M., 2017. Utilizing Lean Principles to Improve Immunization
Administration Efficiency in a Pediatric Mobile Clinic Program.Pediatric Quality &
Safety. 2(5). p.e037.
Hiscox, E. T., 2015. Principles and Practices for Baptist Churches: A Guide to the
Administration of Baptist Churches. Kregel Publications.
James, S. and Maples, A., 2016. The relationship between principles and policy in tax
administration: Lessons from the United Kingdom capital gains tax regime with
particular reference to a proposal for a capital gains tax for New Zealand. eJournal of
Tax Research. 14(2). p.455.
Juárez, F., 2014. Review of the principles of complexity in business administration and
application in financial statements. African Journal of Business Management. 8(2).
p.48.
Kline, R. B., 2015. Principles and practice of structural equation modeling. Guilford
publications.
Marume, S.B.M. and et.al, 2016. The Principles of natural justice in public administration and
administrative law.
Organ, J.F. and et.al, 2014. Public trust principles and trust administration functions in the North
American model of wildlife conservation: Contributions of human dimensions
research. Human dimensions of wildlife.19(5). pp.407-416
9
Burgstahler, S. E., 2015. Universal design in higher education: From principles to practice.
Harvard Education Press. 8 Story Street First Floor, Cambridge, MA 02138.
Fafaliou, I. and Donaldson, J., 2015. Principles of administration revisited.
Filippatos, T. D. and Elisaf, M. S., 2016. Basic principles of fluid administration. Evidence-
based Medicine & Public Health. 2.
Gupta, A, Garcia, C. and Ugalde, M., 2017. Utilizing Lean Principles to Improve Immunization
Administration Efficiency in a Pediatric Mobile Clinic Program.Pediatric Quality &
Safety. 2(5). p.e037.
Hiscox, E. T., 2015. Principles and Practices for Baptist Churches: A Guide to the
Administration of Baptist Churches. Kregel Publications.
James, S. and Maples, A., 2016. The relationship between principles and policy in tax
administration: Lessons from the United Kingdom capital gains tax regime with
particular reference to a proposal for a capital gains tax for New Zealand. eJournal of
Tax Research. 14(2). p.455.
Juárez, F., 2014. Review of the principles of complexity in business administration and
application in financial statements. African Journal of Business Management. 8(2).
p.48.
Kline, R. B., 2015. Principles and practice of structural equation modeling. Guilford
publications.
Marume, S.B.M. and et.al, 2016. The Principles of natural justice in public administration and
administrative law.
Organ, J.F. and et.al, 2014. Public trust principles and trust administration functions in the North
American model of wildlife conservation: Contributions of human dimensions
research. Human dimensions of wildlife.19(5). pp.407-416
9
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