Carl Yankowski culture. Many expected him to push the company faster into the consumer market, with brightly$-$coloured PDAs and extra consumer features such as MP$3$ and video. Instead, he has made his main priority the staid corporate market. At present, most Palms make it into the office thanks to somebody$$s personal expense account. Mr Yankowski$$s aim is to encourage IT managers to purchase them directly for employees, much as they buy PCs$.$ This is not a bad strategy$$the corporate PDA market is about the same size as the consumer market, and both have lots of potential$$but it may be a waste of Mr Yankowski$$s special talents. While he tries to sell his firm$$s strait$-$laced productivity tools, in black and grey, to corporate purchasing managers, his old company, Sony, is generating enviable buzz with a cool purple PDA that plays videos and has a headphone jack. Worse, the corporate market is the one in which Palm faces its toughest competition, in the form of Research in Motion$$s Blackberry interactive pagers, which have generated Sony$-$like excitement among the suits. Palm$$s recent results have at last provoked Mr Yankowski into thinking more broadly. He is now in management retreats with his staff and is expected to announce a new strategy soon. But his options get more limited by the day. Palm$$s finances are too rocky to get into a consumer$-$marketing race with Sony. Nor does it have the products to justify that. The first Palms designed on Mr Yankowski$$s watch are now out. They do little more than add an expansion slot like the one Handspring has had for two years. Meanwhile, the collapse of the planned merger with Extended Systems, which has had success selling to IT managers, limits the push into the corporate sector. And abandoning hardware entirely would reduce Palm to a software and services firm$$hardly the place for a consumer$-$marketing guru. Mr Yankowski does not have much more time to find the right answer. QUESTION $2-$ What criteria can Palm use to segment its market?