What is "product bundling" in marketing?

Product bundling in marketing refers to the strategy of grouping several products together for sale as one combined product. This approach allows businesses to offer a set of related or complementary items at a reduced total price compared to purchasing each item individually.

The rationale behind product bundling is multifaceted. It can enhance customer perception of value, encourage consumers to try new products they may not have purchased otherwise, and help to increase the overall sales volume by making it more appealing for customers to buy multiple items at once. Additionally, bundling can improve inventory management by helping to move products that may not sell as well on their own.

This strategy can be particularly effective in certain industries, such as entertainment (e.g., bundled services like cable and internet), food (e.g., combo meals at fast food restaurants), and software (e.g., suites that include multiple applications). By presenting these products as a single package, companies can effectively enhance their marketing efforts and create a more compelling offer for consumers.