Chapter 6: Market Segmentation and Positioning
This activity will introduce you to SIC Codes which are used to segment business markets.
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. the UK, Europe and the US.
Visit the following website and locate the SIC codes for the business activities listed:
The Office for National Statistics (ONS) - http://www.ons.gov.uk/ons/guide-method/classifications/current-standard-classifications/standard-industrial-classification/index.html
• 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.