Marketing – New Product and Place

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In several articles and in an Amazon press release dated October 26, 2017, it was reported that Amazon has launched a new service, “Amazon Key” in over 30 cities across the U.S. This service is free and requires the user install a smart lock and security camera provided by Amazon in the user’s home. This system allows deliveries by Amazon personnel (i.e., shipping personnel for now), and later Amazon home services to enter the customer’s home to enable more secure delivery of packages and services. The delivery can then be viewed by the customer as it is occurring. Although the customer must pay for the key kit and can request professional installation, the extra delivery inside the home is free to “Prime” customers who already pay a yearly fee for expedited delivery. The camera allows Amazon delivery personnel access once it detects the correct driver is at the front door and authenticates their needed access. At that point the door unlocks and the customer can begin viewing the delivery. The secure delivery is guaranteed by Amazon. [See Amazon press releases on the Amazon website. Go to “Introducing Amazon Key….” dated 10/25/17.]

  • Discuss how Amazon has utilized “product” to enhance “place,” two of the four P’s of the marketing mix to increase market share.

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