FedEx - Market segmentation (selecting variables)

• Describe customers and potential customers (NOT products)
  • Age, income, frequency of exercise all describe customers
    • These make meaningful segmentation variables
  • describe product differentiation, NOT market segments
• Divide customers into groups such that
  • the needs and wants of customers within a group are very similar
  • the needs and wants of customer in different groups are different
• Useful variables
  • Type of customer
  • Intended use
  • Level / categories