Definition of Standard Industrial Classification Code (SIC code)

four-digit numeric code established by the U.S. government to designate various industries as defined by their functions and products. SIC codes are used by direct marketers to segment lists and to target promotions. The government uses them to report and track business-related census data. The first two digits indicate a major industrial classification; the second two digits, an industrial subgroup. For example SIC code 2300 represents a manufacturer of clothing; code 2352, a manufacturer of hats and caps. What the code cannot tell the direct marketer is whether a business is engaged only in that activity defined by the SIC code or whether the code represents only a primary business activity. If the latter is the case, there may be other marketing opportunities pertaining to that firm not identified by the SIC code.