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The All New Concept of Product Bundling in the Marketing Arena.

By Nathan Brown T Subscribe to RSS | June 13th 2012 | Views:
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Product bundling has become a frequently adopted trend in the world of marketing and selling. It can be defined as a marketing strategy that involves the sale of several products, as one combined product. This strategy has been widely used in the communication space, technology services space, and the fast food space. This strategy is commonly adopted in the communication services space in the United States. A number of companies are starting to adopt this strategy for selling and marketing their products, as there are many benefits to be incurred. For example, Charter Communications, which is a communication services provider in the US, offers Internet, Telephone, and Digital TV services in single bundles called as Charter Bundles.

There are lots of gains that can be obtained by an enterprise while adopting the product bundling strategy. The benefits are as follows:

•Selling of high volume and high margin products are easily possible.

•Marginal costs are minimal.

•Reduction in inventory of high margin products.

•Enables the enterprise to drive out or sell low-selling goods.

There are four different types of product bundling strategies:

•Pure bundling: in this strategy the consumer can only purchase the entire bundle and has no choices.

•Mixed bundling: in this strategy the consumer can either purchase the entire bundle or can chose from any one of the separate parts of the bundle.

•Joint bundling: in this strategy the consumers can buy two products at one bundled price.

•Leader bundling: in this strategy, a frequent selling product is offered at discount prices if purchased with a not so frequently selling product.

In the communication services space, the product bundling concept is pretty much familiar and it is adopted by most companies in the space. Such companies offer services such as Internet, cable TV, digital telephone, and satellite TV, among others. Most companies use this strategy by including all their services in one single bundle, or include any two of their services to form a single bundle. The companies tend to sell their bundles at a fixed price, which in many cases may be lower than the price of choosing a single service.

The product bundling strategy is also adopted entirely by the fast food industry. Most fast food outlets offer snacks, eateries, and other fast food stuff along with beverages and hot drinks, such type of product bundling is called as combos. The combo may include different types of food stuffs and beverages, which are available at relatively lower prices when compared to the buying the items separately. The fast food industry in its entirety has totally adopted this product bundling strategy, as it has provided benefits from a seller’s standpoint.

Product bundling yields benefits for both the buying entity as well as the selling entity, which equates to a win-win situation for both of them. The only industry where the product bundling strategy does not bode well is in the oligopolistic and monopolistic industries, where it results in unfair use of market power.

Dazzle Rogers is a freelance writer and an active blogger, who likes to share his opinions and intellections with the Internet community in order to source out some great deals like the one provided by Charter Bundles. The technology service providers and communication service providers have adopted a new strategy called product bundling, which according to them has increased the number of products sold and also attracted new customers. This strategy was initially adopted by the fast food industry, and now the same strategy has been yielding benefits to communication service providers and technology service providers.

Nathan Brown T - About Author:
Dazzle Rogers is a freelance writer and an active blogger, who likes to share his opinions and intellections with the Internet community in order to source out some great deals like the one provided by Charter Bundles. The technology service providers and communication service providers have adopted a new strategy called product bundling, which according to them has increased the number of products sold and also attracted new customers. This strategy was initially adopted by the fast food industry, and now the same strategy has been yielding benefits to communication service providers and technology service providers.

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