Let's start off by reviewing formal definitions of each and then we'll explain how marketing and advertising differ from one another:

Advertising: The paid, public, non-personal announcement of a persuasive message by an identified sponsor; non-personal presentation or promotion by a firm of its products to its existing and potential customers.

Marketing: The systematic planning, implementation and control of a mix of business activities intended to bring together buyers and sellers for mutually advantageous exchange or transfer of products.

After reading both of definitions, it is easy to understand how differences can be confusing to point that most people think of them as one and same. So, lets clear up confusion.

So, what's barter? Barter is exchange of goods and services without use of cash. It is oldest form of commerce, and today more and more businesses are discovering or rediscovering awesome power of barter.

Here's how barter works: When you need a product or service for your business, instead of paying for it with cash, you instead pay for it with your otherwise unsold products or services, meanwhile allowing your business to expand without additional cash outlay. It is estimated that over 65% of Fortune 500 companies engage in barter to one extent or another.

But don't get impression that barter is just for big business. Local companies trade among themselves all time, for products and services to reduce cash outlay, and to promote their businesses. For example: