Activity 5.2: SIC Codes

This activity will introduce you to SIC Codes which are used to segment business markets.

Chapter Reference
Chapter 5: Market Segmentation and Positioning

Overview
This activity will introduce you to SIC Codes which are used to segment business markets.

Activity Description
Organizational characteristics are often used to segment business-to-business markets. There are a number of criteria that can be used to cluster organizations, including size, geography, market served, value, location, industry type, usage rate, and purchase situation. To give an idea of the types of activity a business undertakes and a particular size of the market for that business activity, Standard Industrial Classification (SIC) codes are often used. They are easily accessible and standardised across most Western countries, e.g. UK, Europe and the US.

Visit the website and locate the SIC codes for the business activities listed:

  • Electricity, gas and water supply (Production and distribution of electricity);
  • Hotels and Restaurants (Licensed hotels and motels);
  • Education (Post-graduate level higher education).

Explain how this information could be used to help the business be more effective at targeting its customers.

Website

The Office for National Statistics (ONS) - http://www.ons.gov.uk/ons/guide-method/classifications/current-standard-classifications/standard-industrial-classification/index.html

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