What is Productization Of Services? and why it is important?

What is Productization of services? why is it so important to the service-based companies? How companies go about Achieving it?

This one of the part of services marketing. Before this please check the Definition and Characteristics of services.

What is Productization of services?

Productization of services

Productization of services is transforming services into more like products or goods by using different ways.

why Productization of services is important to companies?

Services providers provide services which are heterogeneous from one customer to another and each time it will different.

Whereas the product will be the same as one customer to another, even at whatever time.


Services from the restaurant will be different from customer to customer, each time there will be little change in taste in food.

But like a car will not differ from customer to customer and whenever a customer buys it will be same.

Customer can trust the product easily because it will be same at all the time. And the customer will have doubt that services might be different for each time.

There is an importance of productization of services for a company is to gain more trust.

How companies go about Achieving it?

Productization of services is achieved by the companies are:-

1) Physical Evidence

By increasing more physical evidence like Reviews, Services bills, other equipments to perform a service, etc. Which can show trust in services that are been provided by the company.


Services provider like Restaurants have tables, chairs, bills, and reviews, etc to make more trustable to customers.

2) More durable:-

Services are perishable which means that can be used for one time, it cannot be stored in storages, etc. But due to technology, there can be an increase in durability of services.


Concert where it will happen once, but this can be stored with the help of cameras, can be replayed at whatever time in youtube or in other streaming sites.

3) Homogenous:-

With the help of technology making services more homogenous means similar to one service to another. Which means have similar items or methods in performing the services.


Companies like Oyo rooms and Treebo, where they provide a similar type of rooms or minimum promised services as similar as to everyone in every hotel.

4) Separability:-

Whereas services are inseparable in production and consumption, but with the help of the technology a consumer can consume at different time after produced service.


online courses, online videos, whereas produced at one time and consumption is done on other time by the users. or Storing restaurants foods and selling it at other times.

Service Marketing Definition and Characteristics

When it comes to marketing everything is not about selling a product for a company. There is another thing called services. Which are like teaching, Consultants, Software designer, accounting, cleaning, medical treatment, etc which are non-physical. And what is service marketing definition? and characteristics of services.

Service Marketing Definition

Economic activities whose output is not a physical product, is generally consumed at the time it is produced, and provides added value in forms that are essentially intangible concerns of its first purchaser is called services.

Today’s world service sector is growing faster than any other sector. Services sectors are creating more employment and high contribution to GDP in many countries.

Service Marketing Definition

Here is the service definition by American Marketing Association(AMA).

The activities, benefits or satisfactions which are offered for sale are provided in connection with the sale of goods.

Service Definition by American Marketing Association (AMA)

Activities of Promoting and selling of the services is known as services marketing.

Characteristics of the Services

The differences between goods and services are based on these Characteristics. And many of the strategies, tools, and frameworks are been developed for these characteristics of services. Following are the Characteristics of the services:

1) Intangibility

The most basic thing which differentiates characteristics of services is intangibility. Because services are performance or actions rather than objects. Which are cannot be seen, felt, tasted, or touched in the same manner that you can sense tangible goods.


A patient gets treatment by the doctor. The Patient cannot see or touch the services. Although a patient may able to see or touch other components like equipment or hospital room.

2) Heterogeneity

Because services are performances, frequently produced, consumed, and often co-created by humans, no two services will be precisely alike. People may differ in their performance from day to day or even hour to hour.

Heterogeneity also results because no two customers are precisely alike; each will have unique demands or experience the service in a unique way.

Because services are often co-produced and co-created with customers, customer behaviors will also introduce variability and uncertainties, resulting in heterogeneity of outcomes.


A Chef cannot make food twice exactly taste alike, because there will be some minor different in taste.

3) Simultaneous Production and Consumption

Whereas most goods are produced first, then sold and consumed, many services are sold first and then produced and consumed simultaneously. Customers that are present while the services are being produced and thus view and may even take part in the production process as co-producers or co-creators of services.

Simultaneously also means that customers will frequently interact with each other during the service production process and thus may affect each other’s experiences.


An automobile can be manufactured in the USA, shipped to India, sold two later, and consumed over a period of years. But restaurant services cannot be provided until they have been sold, and dining experience is essentially produced and consumed at the same time.

4) Perishability

Perishability refers to the fact that services cannot be saved, stored, resoled, or returned. In contrast to goods that can be stored inventory or resold another day, or even returned if customer is unhappy. Bad haircut could not be returned or can not be resold to another customer.


A seat in airplane or in a restaurant, an hour of lawyer’s time, or space in a shipping container not used or produced cannot be reclaimed and used or resold at a later time.


The service marketing definition is all about providing marketing to services. And these characteristics which make different from products. Based on characteristics of services many of the strategies, tools, and frameworks are been developed. These will characteristics apply to all services.