EBay has been trying to make its way into the Asian markets. It has been noticed that the American companies have had to face some problems in making their ways into the Asian markets. However, Starbucks has been successfully working in Asian markets since many years.
Cultures have an influence over the markets thus making them cultural markets and these are the main factors that are to be understood. EBay has been a failure in understanding the culture of Asian markets (Lovelock and Wirtz, 2005, p. 23).
Gunaxi is the term that American companies should be familiar with. This explains the basic nature of dynamics involved in the personal network of influence and this concept runs in the Chinese society. This explains the dealing between two people in which one of the persons performs an act of service. EBay has failed to learn the fact that the Chinese, after the Africans, are corrupt people and bribery is a common factor in the Chinese society. To excel in the Chinese society, EBay has failed to make notice of the ways in which Chinese people could be handled so as to make ways in the markets. EBay had to make sure that right officials were bribed so as to make way into the markets (The University of California, 2006, p. 33).
Marketing is an integrated communication based process wherein it is understood that the needs of the customers can be satisfied through proper communication. Marketing orientations play an important role in the marketing strategy. The product orientation is where the firm is concerned with the quality of the product. The sales orientation, customer orientation, production, marketing and organizational orientations are the main orientations that firms have to keep in mind.
For proper marketing the four Ps are known to the marketing world. The four Ps are necessary to understand the basic requirements for international marketing. The four Ps are inclusive of the Product deals with specification related to the products as well as the needs of the customer. Pricing includes the prices as well as the discounts being offered on the products. Placement or distribution refers to the ways in which a product reaches the customer. Promotion is the way in which a product is marketed in the market so as to attract customers. These are the four main points that EBay has to keep in mind when reaching out to the international markets (Freeman and Bartels, 2004, p. 33).
These are the four points which make up the marketing mix for any organization. Apart from these four points the other issues that should be kept in mind while reaching out to the international markets are the cultural differences with the other countries. These are the main errors that have been committed by EBay when making their ways into the international markets, especially Asian markets.
In addition to this the expansion and entry into foreign markets can be achieved successfully by following the four mechanisms. Exporting is the mechanism by which an international market can be reached in a proper manner by selling the product in a foreign market. The property of the licensor for product production can be used by the mechanism of