I had installed it globally by running npm install webpack -g and I had included it in my project by running npm install webpack --save-dev.
However, on running the
Make sure that webpack.config is in the proper place in the tree. Actually mine was in the proper place but I had to delete the whole file and then replace because the first time I ran web pack in terminal I had missed an underscore for __dirname. Instead of two, I had one. So I ran it with that fixed that a couple times trying this or that and came across this post. So I started over and even though in the same place for some reason it wasn't according to webpack.