People talk about business in the abstract a lot in business school. Markets, demand, consumer sectors, and demographics are all mentioned. I held a different belief, though: that markets and the concepts they are associated with don't exist. Markets are nonexistent. Let me say that again. Customers who are real people do exist.

Even though I could only sell Japan sex movies to  bartenders and bar managers, I could talk about markets all I wanted. Because markets don't buy beer, you can only sell it to an individual. Buyers of beer Similarly, marketing doesn't make things sell. Selling products works best when it's combined with providing genuine value. Once, I was giving a guest lecture at Harvard Business School when a slightly arrogant and bothersome student praised my "great marketing." Since it implies that the marketing is more significant than the beer, it is a backhanded compliment that people have frequently given me over the years. This is untrue; our success has been attributed to the beer.

 

In actuality, it took us until 1994—ten years after we first began—to hire our first marketer. According to an old proverb, nothing kills a bad product faster than good marketing. We've done both effective and ineffective marketing as well as good and bad advertising. But the beer has always been top-notch, and we have the best sales team in the industry. In any case, the student was waiting for a response, so I took a deep breath and calmly responded with my usual comments about the beer's quality and the preference for sales over marketing.

 

This hypothesis was rejected. The student disagreed, arguing that effective marketing was crucial and sales were, in fact, "low function tasks." Then he explained to me that sales was merely a continuation of marketing. He questioned, "What's the difference between marketing and sales?" "I told this student, "I'll tell you the difference," as I turned to face him.

The distinction between masturbation and sex is the distinction between marketing and sales. I believe I heard a few gasps. Good! I aimed to catch people's eyes. Therefore, I continued, "One you can do by yourself in a dark room and deceive yourself into thinking you're getting something done. The other requires actual human abilities as well as all of the rage, muck, and mire that comes with genuine human contact.

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