How to Answer: How do you define market opportunity in a business plan?
Advice and answer examples written specifically for a Product Manager job interview.
14. How do you define market opportunity in a business plan?
Why the Interviewer Asks This Question
One of the main roles of a product manager is to analyze and identify market opportunities. The interviewer wants you to define what a market opportunity is and explain how you would go about locating one for the company.
Written by Tiffany McPherson on May 10th, 2022
How to Answer
Your answer should provide more than just the steps you would follow. It also needs to explain why the process is important for the success of the product. Start with a brief definition of a market opportunity, and then move into your own process for identifying one, making sure to discuss both internal and external factors.
Written by Tiffany McPherson on May 10th, 2022
Answer Example
"Market opportunity is the estimate of how many users are in the target market and the projected potential sales I could make. It is critical for product managers to know there is a customer base who will buy the product before the development and rollout processes are initiated. When I am defining a market opportunity, I look at its size, potential for profit, and market growth (the compound annual growth rate or CAGR). I also research our competitor's market share as well as if there is a subsegment of the market we should focus on. If there are businesses or professional contacts in the target market, I would also reach out to them for any insights they can share and begin lining up potential sales."
Written by Tiffany McPherson on May 10th, 2022