**Grouped Products**

> Grouped products allow you to create a new product using one or more
> existing products in your store. For instance, let’s assume you have a
> “Barrack Obama Action Figure” and a “George W Bush Action Figure”
> already in your store and you wanted to sell them as a bundle. You
> would simply create a new Grouped Product (let’s call it “Obama + Bush
> (Get Both and Spend Twice as Much!)”, then add both action figures to
> the group via the “Associated Products” tab.
> 
> Note: Unfortunately, you are not able to set a special “group” price
> directly from the product page. To offer a discount for buying items
> together, you will need to create a new Shopping Cart Price Rule.

**Bundle Products**

> This product type is also known as a “kit” in other eCommerce
> software. This product type is ideal for circumstances where the user
> have to select a number of configurable options, but at least one
> option. This might includes products like:
> 
> Customizable Computer Systems 
>
> Customizable Tuxedos/Suits

*References*: 

 - [Ref1][1]
 - [Ref2][2]


  [1]: http://www.magentocommerce.com/knowledge-base/entry/product-type-roadmap
  [2]: http://www.magentocommerce.com/wiki/modules_reference/english/mage_adminhtml/catalog_product/producttype