Page 308 - Introduction to Business

282 PART 3 Marketing

EXHIBIT 8.4
The North American Industry Classification System (NAICS)
for Business Firms

Code Industry
11 Agriculture, forestry, fishing, and hunting
21 Mining
22 Utilities
23 Construction
31–33 Manufacturing
41–43 Wholesale trade
44–46 Retail trade
48–49 Transportation and warehousing
51 Information
52 Finance and insurance
53 Real estate and rental and leasing
54 Professional, scientific, and technical services
55 Management of companies
56 Administrative and support and waste management and
remediation services
61 Educational services
62 Health care and social assistance
71 Arts, entertainment, and recreation
72 Accommodation and food service
81 Other services (except public administration)
91–93 Public administration

market their products or services to any of these industries can obtain lists of compa-
nies that are included in the NAICS categories.
Marketers need to understand the differences between the ways consumers and
organizations purchase goods and services. While many purchases by consumers
involve modest expenditures for consumable products, organizations are more likely
to be purchasing more expensive products, like machinery, that are used in making
other products. Business firms tend to purchase in much larger quantities than indi-
vidual consumers or households. They put more emphasis on rational buying
motives such as efficiency, productivity, and cost versus value than consumers. Pur-
chasing by organizations also involves a more complex and lengthier process and
new tasks Brand-new, first-time
purchasing decisions for organizations involves more people, usually trained specialists, than that by individual consumers.
that require a great deal of information It is helpful for marketers to understand the type of purchasing decisions facing
gathering and evaluation organizations. New tasks are brand-new, first-time purchasing decisions; they
straight rebuy A routine purchasing require a great deal of information gathering and evaluation. A straight rebuy situ-
situation for organizations that requires ation is routine and requires little or no time or effort. In a modified rebuy case, the
little or no time or effort to conclude
buying firm is considering different suppliers for an item previously bought on a
modified rebuy The buying decision for
organizations that involves the straight rebuy basis.
consideration of different suppliers for
an item previously bought on a straight Government Market
rebuy basis
government market Local, state, and In the United States, the government market involves purchases by local, state, and
federal purchasers of goods and federal governments, which amount to about 25 percent of all purchases. Thus, the
products
government sector is an important customer. In some countries, governments are

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