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Definitions of Hecke algebras

There is a definition of Iwahori-Hecke algebras for Coxeter groups in terms of generators and relations and there is a definition of Hecke algebras involving functions on locally compact groups. Are these two concepts somehow related? I think I read somewhere that the Hecke algebra with functions includes Iwahori-Hecke algebras, is that correct? Is there a good motivation for introducing and studying either type of algebras? How much is known about their representations?