Which analysis involves the description and estimation of the size and sales potential of market segments?

The analysis that involves the description and estimation of the size and sales potential of market segments is known as Market Opportunity Analysis. This process focuses on identifying specific market segments that can be targeted for marketing efforts based on their growth potential and unmet needs. It encompasses assessing the overall size and dynamics of the market, estimating the potential sales within those segments, and understanding trends that may influence consumer behavior.

By conducting a Market Opportunity Analysis, businesses can prioritize their efforts and allocate resources effectively to capitalize on the most promising opportunities. This type of analysis provides vital insights that inform strategic decisions regarding product development, marketing, and sales strategies.

In contrast, Market Segmentation Analysis primarily deals with dividing a market into distinct groups of buyers who have different needs or behaviors, while Competitive Analysis focuses on understanding the strengths and weaknesses of current and potential competitors in the market. Product Opportunity Analysis assesses the potential success of a specific product based on various factors but does not solely concentrate on the market's overall size or sales potential.