#Marketing - Understanding Marketing and Revenue

Revenue is essential to understand when engaging in marketing. Let's explore how to understand revenue, the perspective needed when approaching marketing in a practical setting, and the fundamental revenue formula that everyone overlooks in achieving successful marketing.

These days, we encounter marketing unexpectedly, even without any prior learning or anticipation. I, too, became a marketer out of the blue despite having no prior knowledge of marketing as a non-major. I was expected to work with numbers and showcase a creative approach to marketing, but I often found myself simply staring blankly at my desk.

I messaged my friends asking what marketing was, searched online, and ended up feeling disheartened on several days before heading home from work.

First, I needed to understand what marketing was in order to do it.

What is Marketing?

The dictionary defines it as all business activities related to distributing products or services to consumers. However, other books suggest that its definition and content have changed significantly over time. The terms "producer," "distribution," and "business activity" might not be readily relatable, making marketing seem even more unfamiliar. So, let's not overthink it. We need a simple definition to help us remember it better.

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Market (market) + ing (the process of, ongoing)

It combines the meaning of "market" with a suffix indicating an ongoing action. In simple terms, it can be seen as a series of activities aimed at driving the market. Here, "market" should be understood in a simple sense of location or scale. And "activity" refers to actions or behaviors within the market; it's best understood as commercial activity. Viewed this way, Marketing doesn't seem so daunting.

From this perspective, a marketer becomes someone who works to move the market, and if we understand what needs to be done to drive the market, we become marketers capable of doing marketing.

So, what do we need to do to move the market?

Of course, there are many aspects, but it's best to perceive it as basic activities for generating revenue. The reason for this perception is that when we get a job and enter the workplace, we face discussions related to 'revenue.' After all, can we expect to receive a salary if there's no revenue?

Then, what is 'Revenue'?

Since I'm not particularly bright, I need to keep things simple. I looked it up in the dictionary to grasp its meaning first. Revenue refers to the income obtained from selling products or services. In simpler terms, it's the money earned. So, it can be considered that the main job of marketing is to make money.

So, the marketer's work is now defined. However, we can't just jump into it blindly. We need to understand how revenue is generated before starting. After all, that's how we make money. I've lectured over 1000 marketers and always asked the same question: how is revenue created?

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Number of Customers x Unit Price x Closing Rate

If we sell a product worth 10,000 won to 10 customers with a 50% success rate, the revenue will naturally be 50,000 won.

Marketing in our environment starts with this revenue formula. We need to figure out how to attract customers to make money, how to price products slightly higher or at a fair price for customers, and how to increase the closing rate to convert these product transactions into money.

When we simply look at the word marketing, it seems like a massive, insurmountable mountain, complex and challenging to conquer. However, if we continuously simplify and break it down into smaller parts, there's no marketing we can't do. So, don't be intimidated by the word "marketing" and give it a try.