What aspect of market segments indicates they need to be substantial?

Market segments are considered substantial if they consist of enough potential customers to generate sufficient profit for a business. This concept is fundamental in marketing because a segment that lacks adequate size may not justify the investment in targeted marketing efforts. The viability of a market segment hinges on its ability to provide returns that exceed costs; thus, there has to be enough volume or demand to attract and sustain business resources.

Identifying substantial segments ensures that marketing strategies are directed towards areas with genuine potential for growth and profitability. If a segment is too small or has limited buying power, it can lead to wasted efforts and resources. Marketing professionals prioritize substantial segments to create strategies that not only reach potential customers effectively but also lead to meaningful business outcomes.

The other aspects listed—such as measurement ease, marketing costs, and differentiation—while important, do not directly address the necessity of customer base size for profitability, which is foundational to determining the substantive nature of market segments.