Dividing the market using a group's values, attitudes, and interests is segmentation.

The statement is referring to a specific type of market segmentation known as psychographic segmentation. This approach focuses on dividing a market based on the psychological attributes of consumers, including their values, attitudes, interests, and lifestyles.

Explanation of Psychographic Segmentation

1. Values: Understanding what is important to a group can highlight their purchasing behavior. For example, eco-conscious consumers may prioritize sustainable products.

2. Attitudes: The way consumers feel about certain issues or products can influence their buying decisions. Brands that align with consumer attitudes can better appeal to their target audience.

3. Interests: Consumers engage with products that resonate with their interests, whether these pertain to hobbies, travel, fitness, or technology. Identifying these can lead companies to tailor their marketing strategies effectively.

Psychographic segmentation allows businesses to develop targeted marketing campaigns that resonate with specific segments because it moves beyond basic demographic categories (age, gender, income) to incorporate the deeper motivations behind consumer behavior. This results in more personalized and effective marketing strategies and can lead to improved customer loyalty and satisfaction. In today's competitive marketplace, having this deeper insight is crucial for brands aiming to connect with their audience authentically.