Final answer:
The statement is true as profitable segmentation is essential for justifying the investment in marketing strategies and achieving higher profit margins through differentiation.
Step-by-step explanation:
The statement is True: One condition for effective segmentation is that at least one segment must have substantial profit potential. For a market segment to be viable, it must be large enough to warrant the creation and maintenance of tailored marketing strategies. Without the potential for significant profit, the resources invested in segmentation could not be justified. Effective segmentation leads to differentiation, which allows firms to cater to specific needs and preferences within a market, potentially leading to increased sales and higher profit margins.