What is Productization?

Productization is the process of turning ideas, services, or capabilities into marketable products. Its main goal is to package a service or skill set in such a way that it can be sold as a product.

Turning a concept into a commercial product involves detailed planning, a deep understanding of the target market, and a strategy for differentiation. This initial phase is critical, as it lays the groundwork for the key aspects that follow.

Precursive.com has the following definition of the term:

“Productization is the practice of selling a standardized service as a product, with clearly defined parameters and pricing. Once you have outlined precisely what a customer will receive and the price they have to pay for it, you can market and sell this as a product over and over.”

Key aspects

The key aspects of productization include:

  • Standardization

Developing a suite of standardized products that can be consistently supplied.

  • Scalability

Ensuring that the product can be scaled and tailored to different customers or markets.

  • Market focus

Aligning the product closely with market demands and customer expectations.

  • Branding and Packaging

Building a powerful brand identity and eye-catching packaging to appeal to a wider range of consumers.

Image depicting and explaining the meaning of productization.
Image created by Market Business News.


There are several benefits to productization, including:

  • Predictable Revenue Streams

Products allow revenue streams to be more predictable.

  • Scalability and Efficiency

More easily scalable products can reach a wider audience without suffering proportional increases in price.

  • Market Expansion

Productization can lead to the emergence of new clientele and market niches.

  • Improved Brand Value

Well-defined products enhance brand value and bolster brand recognition.

Strategies for Successful Productization

  • Identifying Core Strengths

Focusing on core competencies and unique value propositions.

  • Customer-centric approach

Using customer feedback and applying it to the development of the product.

  • Clear Value Proposition

Creating a clear and compelling value proposition.

  • Effective Marketing and Sales Strategies

Creating effective, product-specific marketing and sales strategies.


There are several challenges in productization, such as:

  • Balancing customization and standardization

Finding the right balance between meeting individual customer needs and maintaining standardization is crucial.

  • Resource Allocation

Carefully balancing resources between product development and providing services.

  • Market Acceptance

Ensuring market acceptance for new products and overcoming any resistance to novel product forms.

Sustaining innovation is a significant challenge, as productization requires ongoing adaptation to stay ahead in rapidly evolving markets.

Written by Nicolas Perez Diaz