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Michelle Phan longed to pursue a career in art so that she could make the life for herself that her parents dreamed of when they emigrated from war-torn Vietnam. But her father racked up gambling debts and then left when Michelle was six, and her step- father turned out to be overbearing and controlling.

Eventually, he left too, leaving Michelle and her mom to scrape out a meager existence in Sarasota, Florida.

In 2007, at the age of 19, Michelle Phan was waiting tables at Pacific Rim Sushi and although she'd managed to scrape together enough money for one year of school at the Ringing College of Art and Design, the family was too broke to pay for her second year. She applied for better jobs more in line with her interest, including a makeup artist position at the local Lancôme cosmetics counter, but she was turned down. Despite all this, or maybe because of it, Michelle developed a drive and an inner purpose that led her to persevere.

In her spaye time, she started a blog about the life she imagined and a YouTube channel under the screen name RiceBunny, where she pro-

jected a confident, charismatic, cool persona. However, her blog was just the start. During that first year at Ringling, Phan used her laptop
to record, edit, and post a makeup tutorial video to YouTube--then a brand-new platform just finding its footing. Within a week, it had gar-
nered 40,000 views and demand for more. She created more videos on how to create different looks, from dark and stormy to soft hues appropriate for church. Phan established herself as an authority on beauty and she shared her expertise.

"You need interesting content that entertains or informs-preferably both. You want people to look forward to your posts and come back for more. People want to follow you. They want to hear your words and see your vision." Her lack of money to buy makeup didn't limit her ability to create new videos- she scoured the bargain bins at stores, picking up many items for less than a dollar.

Within four years, Phan had become a brand. The name Michelle Phan conveyed an image and position in the market. Google offered her $1 million to create 20 hours of content, and she began creating video content for Lancôme, who contacted her based on her expertise and results. Her video tutorials also led her to start a lifestyle network called ICON and a beauty subscription service called Ipsy. In 2013 she part nered with L'Oreal USA to create her own beauty brand, Em Cosmetics, which she later bought from L'Oreal so that she could have more artistic control.

By 2016, Michelle's YouTube channel had more than 8 million followers and more than a billion views. While many might perceive YouTube as a difficult path to a successful career, Phan believes just the opposite. She explains, "You're in control of how people perceive you and see you. I can't say the same for traditional media because you have other people who are editing you--producers and other people who have the final say. Your YouTube channel is your own show. I think it's a wonderful platform for anyone who wants to have stronger creative control over their content, their message, their vision, and their branding.

Through hard work, diligence, and a deep understanding of linking consumers to products through the Internet, Phan has established herself as a powerhouse in the beauty and lifestyle industry. She carefully monitors trends in her environment and quickly spots new opportunities. At the same time, she's kept a keen eye on her target market and understands the consumer buying process. Oh, and in 2014 Ringling College of Art and Design awarded her an honorary doctorate. (After studying the content in this chapter, you should be able to answer a set of discussion questions found at the end of the chapter.)

As consumers, we are influenced by the marketing activities of people like Michelle Phan and by companies like L'Oreal, Apple, and Pizza Hut that want us to buy their products rather than those of their competitors. Being consumers makes us the essential ingredients in the marketing process. Every day, we express needs for such essentials as food, clothing, and shelter and wants for such nonessentials as entertainment and leisure activities. Our needs and wants are major forces that drive marketing.

What comes to mind when you think of marketing? Most of us think of marketing as advertisements for products like fast foods, movies, soft drinks, and cars.

Marketing, however, actually encompasses a much wider range of activities. The American Marketing Association defines marketing as
"activities, a set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.'"? To see this definition in action, we'll continue this chapter by looking at some marketing basics, including the ways marketers build relationships with customers. We'll then examine forces that constitute the external marketing environment, followed by marketing strategy, the marketing plan, and the components of the marketing mix. We'll then discuss market segmentation and how it is used in target marketing. Next, we'll examine marketing research, followed by a look at key factors that influence the buying processes of consumers and industrial buyers. Finally, we'll consider the marketing mix for small business and then go beyond domestic borders to explore the international marketing mix.

What causes buyers to purchase one product instead of another? Although our desires for the wide variety of available goods and services may be almost limitless, in most cases our financial resources are not and so we have to be selective. Accordingly, customers usually try to buy products that offer the best value when it comes to meeting their needs and wants.

Value and Benefits The value of a product refers to its comparative benefits versus costs. Benefits, in turn, include not only the functions of the product but also the emotional satisfaction associated with owning, experiencing, or possessing it. For instance, a pair of $40 basketball shoes from Walmart may be perfectly ade- quate for most recreational players but many people still spend much more for the

latest version of Jordan, LeBron, Durant, or Kyrie endorsed shoes because of their style or cache. But every product also has costs, including the sales price, the buyer's time finding the product, and even the emotional costs of making a purchase decision (such as deciding which pair of basketball shoes to buy). A satisfied customer.

1. What forces in the external environment have created opportunities or challenges for Michelle Phan? Explain.

2. How would you describe Michelle's marketing philosophy in terms of her value package, marketing mix, and overall approach?