Page 221 - Foundations of Marketing

188 Part 3 | Customer Behavior and E-Marketing

E ntrepreneurship in Marketing

Pixability Helps Small Businesses Compete Through Videos

Bettina Hein, the founder and CEO of Pixability, says that she video camera and a list of suggested video shots for the
is in the business of “trying to democratize video.” In today’s customer to film. Once the customer has uploaded about
wired world, YouTube and other sites are now the go-to 30 minutes of raw footage, Pixability’s specialists edit
place for how-to videos, customer testimonials, and product everything down to two minutes, add music and cap-
demonstrations. Yet small businesses rarely have the exper- tions, and insert the customer’s logo and contact infor-
tise and equipment to make, edit, and post professional- mation. The result is a video that conveys the customer’s
looking videos online. And that’s where Pixability comes in. message for as long as it’s available on the Web.
Pixability, a Boston-based company founded in 2008, Knowing how effective online videos can be,
helps small businesses turn their ideas into completed, Pixability practices what it preaches. The fast-growing
uploaded videos in about two weeks, at an affordable small business now has dozens of instructional videos
price. First, Pixability talks with each customer about on its website to help customers make the most of their
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the purpose of the video. Then it sends out a handheld video marketing.

© iStockphoto.com/CRTd

LO 5 . Describe industrial INDUSTRIAL CLASSIFICATION SYSTEMS
classification systems, and
explain how they can be used
Marketers have access to a considerable amount of information about potential business
to identify and analyze business
customers through government and industry publications and websites. Marketers use this
markets.
information to identify potential business customers and to estimate their purchase potential.
Much information about business customers is based on industrial classification systems.
In the United States, marketers historically relied on the Standard Industrial Classification
(SIC) system, which the federal government developed to classify selected economic charac-
teristics of industrial, commercial, financial, and service organizations. The SIC system was
replaced by the North American Industry Classifi cation System (NAICS) when the United
States joined the North American Free Trade Agreement (NAFTA). NAICS is a single industry
classification system used by the United States, Canada, and Mexico to generate comparable
statistics among the three partners of NAFTA. The NAICS classification is based on production
activities. NAICS is similar to the International Standard Industrial Classification (ISIC) sys-
tem used in Europe and many other parts of the world. Whereas the older SIC system divided
industrial activity into 10 divisions, NAICS divides it into 20 sectors. NAICS contains 1,170
industry classifications, compared with 1,004 in the SIC system. NAICS is more comprehen-
sive and up-to-date, and it provides considerably more information about service industries
and high-tech products. Table 7.2 shows some NAICS codes for Apple Inc. and AT&T Inc.
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Industrial classification systems provide a uniform means of categorizing organizations
into groups based on such factors as the types of goods and services provided. Although an
industrial classification system is a vehicle for segmentation, it is best used in conjunction with
North American Industry
Classification System other types of data to determine exactly how many and which customers a marketer can reach.
(NAICS) An industry classifi- A marketer can take several approaches to determine the identities and locations of orga-
cation system that generates nizations in specific groups. One approach is to use state directories or commercial indus-
comparable statistics among trial directories, such as Standard & Poor’s Register and Dun & Bradstreet’s Million Dollar
the United States, Canada, and Database. These sources contain information about a firm, including its name, industrial clas-
Mexico sification, address, phone number, and annual sales. By referring to one or more of these

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