Remember to keep your answer brief when responding to questions like these. Principal product managers should be able to articulate complex concepts in direct and easy to understand language. This question offers an opportunity to demonstrate your advanced communication skills in addition to your market analysis knowledge. Interviewers who are interested in ensuring you are an expert in this space will ask follow-up questions accordingly.

"The first thing I would need to perform a market analysis is a description of the product, the problem it aims to solve, and the related user benefits. I would use this information to compare the product to similar products available on the market. I would work to understand what would set the new product apart from the competition and then determine a likely price point and adoption rate.

Using a high level list of features, I would work with design and development experts to generate a high-level development cost for the product. I would then pair this information with the price point numbers to calculate revenue and profitability projections."