When researching an industry, the marketer will encounter two common systems for classifying industries: the North American Industry Classification System (NAICS) and the Standard Industrial Classification (SIC). Both systems use a hierarchic, numeric scheme to define and
distinguish one industry from another, helping to clarify whether the business is manufacturing, retail, wholesale, service-based, or commodity- based. As Michael Lavin puts it:
It is vague to say a company is in the motion picture business. Is the speaker describing a film studio? A production company? A distributor? A casting service? . . . (Lavin 1992, 62)
The primary purpose of industry codes, such as NAICS and SIC, is to aid U.S. government agencies (and their North American counterparts) in collecting, tabulating, disseminating, and analyzing statistical data about business establishments and activity. The codes are also heavily
used by information providers as a means of arranging many different types of information by industry, including company listings, narrative overviews, financial ratios, economic reports, and statistics.
NAICS officially replaced SIC codes in 1997, but SIC continues to be used in many commercial publications, and for historical data. Although the direct impetus for the revision was the adoption of the North American Free Trade Agreement (NAFTA), the SIC system had regularly been critiqued as out-of-date, and NAICS has indeed improved the definition of new and emerging sectors, especially technology, information, and service industries in general. Furthermore, regular revisions continue to keep it current.
While appreciating their usefulness, it is also important to recognize the limitations of industry codes as aids to research. Simply because there is a code for a particular industry, does not necessarily mean that there is a corresponding ability to capture a significant amount of information about it. For example, “bowling centers” has a NAICS code of 71395, but the researcher should not expect to find a great deal of published information about that particular enterprise. Instead, it might be necessary to look at the broader segment “Amusement, Gambling & Recreation Industries” (NAICS 713).
Furthermore, many of the sources given below utilize their own industry names rather than the numerical, hierarchical NAICS or SIC systems. NAICS is based on a six-digit code system whereby each industry can be broken down into finer distinguishing segments than was possi-ble in the 4-digit SIC system. There are 20 major divisions, represented by the first two digits. After the initial two-digit category, the digits classify the industry more specifically in its sector.
Thus, 71 represents Arts, Entertainment and Recreation; 713 is Amusement, Gambling and Recreation; 7139 is used for “Other Recreation”; 71391 is Golf Courses and Country Clubs, 71392 is Skiing, 71394 is Fitness and Recreational Sports Centers, 71395 is Bowling Centers, and so on.
distinguish one industry from another, helping to clarify whether the business is manufacturing, retail, wholesale, service-based, or commodity- based. As Michael Lavin puts it:
It is vague to say a company is in the motion picture business. Is the speaker describing a film studio? A production company? A distributor? A casting service? . . . (Lavin 1992, 62)
The primary purpose of industry codes, such as NAICS and SIC, is to aid U.S. government agencies (and their North American counterparts) in collecting, tabulating, disseminating, and analyzing statistical data about business establishments and activity. The codes are also heavily
used by information providers as a means of arranging many different types of information by industry, including company listings, narrative overviews, financial ratios, economic reports, and statistics.
NAICS officially replaced SIC codes in 1997, but SIC continues to be used in many commercial publications, and for historical data. Although the direct impetus for the revision was the adoption of the North American Free Trade Agreement (NAFTA), the SIC system had regularly been critiqued as out-of-date, and NAICS has indeed improved the definition of new and emerging sectors, especially technology, information, and service industries in general. Furthermore, regular revisions continue to keep it current.
While appreciating their usefulness, it is also important to recognize the limitations of industry codes as aids to research. Simply because there is a code for a particular industry, does not necessarily mean that there is a corresponding ability to capture a significant amount of information about it. For example, “bowling centers” has a NAICS code of 71395, but the researcher should not expect to find a great deal of published information about that particular enterprise. Instead, it might be necessary to look at the broader segment “Amusement, Gambling & Recreation Industries” (NAICS 713).
Furthermore, many of the sources given below utilize their own industry names rather than the numerical, hierarchical NAICS or SIC systems. NAICS is based on a six-digit code system whereby each industry can be broken down into finer distinguishing segments than was possi-ble in the 4-digit SIC system. There are 20 major divisions, represented by the first two digits. After the initial two-digit category, the digits classify the industry more specifically in its sector.
Thus, 71 represents Arts, Entertainment and Recreation; 713 is Amusement, Gambling and Recreation; 7139 is used for “Other Recreation”; 71391 is Golf Courses and Country Clubs, 71392 is Skiing, 71394 is Fitness and Recreational Sports Centers, 71395 is Bowling Centers, and so on.
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