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.

"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."