Final answer:
The combination of products that make up total sales is indeed known as the sales mix, which is a true statement. Sales mix is important for profitability, while tying sales and bundling are strategies that may affect the sales mix.
Step-by-step explanation:
The statement "The combination of products that make up total sales is known as the sales mix" is true. A company's sales mix is critical to determining profitability, as different products yield different profit margins. Tying sales, a situation where buying one product necessitates purchasing another, can influence the sales mix but is often controversial. This practice can push consumers towards products they don't need, limiting their choices. On the other hand, bundling, which is offering multiple products or services together at an appealing price point, can be beneficial for both the customer and the business.
Bundling vs Tying Sales
In contrast to tying sales, bundling is a marketing strategy that might enhance the sales mix by encouraging customers to purchase more through deals. For example, cable companies often bundle cable, internet, and phone services for a single, attractive price, boosting their revenue while also providing a value proposition for the customer, significantly impacting the overall sales mix.