mgmt 159 midterm

Product-Market Fit

When your product satisfies a real, strong demand in the market.

People aren’t just interested — they’re buying, using, and coming back

Minimum Viable Product (MVP)

The simplest possible version of your product that lets you test whether people actually want it. Not a rough draft of the final product — a learning tool

Build-Measure Learn Loop

The core cycle of lean development. Build a small test, measure what happens, learn from the results, and repeat.

Faster ____ = faster learning

Pivot

A fundamental change in your strategy based on what you’ve learned. You keep out foot planted (an insight, a technology, a customer segment) and shift direction with the other

Iteration

Smaller adjustments within your current approach — tweaking a feature, changing pricing, improving messaging.

Unlike a pivot, the core strategy stays the same

Customer Validation

The process of confirming that real people actually want and will pay for your solution — not just that they say they would

Hypothesis

A testable assumption about your business.

Example: “Students will pay $5/month for a study group”

Lean Methodology

An approach to building businesses that prioritizes rapid experimentation and customer feed back over lengthy upfront planning

Value Proposition

The promise of value your product delivers to a specific customer-segment — why someone should choose your solution over alternatives (or doing nothing)

Value Proposition Canvas

A tool by Alexander Osterwalder that maps what your customer needs (their jobs, pains, gains) against what your product offers (pain relievers, gain creators). It forces you to design your product around the customer, not around your own assumptions

Customer Jobs

The tasks, problems, or needs your cutomer is trying to address — functional (complete a project), social (be seen as reliable by teammates), or emotional (feel confident walking into a meeting)

Pains

The frustrations, risks, or obstacles customers face when trying to get their jobs done

Gains

The outcomes or benefits customers want — what “good” looks like to them

Revenue

The total money a business brings in before any costs are subtracted. Also called “sales” or “the top line”

Costs of Goods Sold (COGS)

The direct cost of making or delivering the product.

For coffee cart: beans, milk, cups. For a developer: land, construction, permits

Gross Profit

Revenue minus COGS. What’s left after you’ve paid to make thing you set!

Gross Margin

Gross profit as percentage of revenue. Let’s you compare profitability across businesses.

Operating Expenses

The costs of running the business beyond making the product — rent, marketing, salaries, insurance

Net Income

What’s left after everything is paid: COGS, operating expenses, interest, and taxes. Also called “the bottom line” or “profit”

Cash Flow

The actual money moving in and out of business. Not the same as profit — a business can be profitable on paper and still run out of cash

Break-Even

The point where revenue exactly covers all costs. Below it, you’re losing money. Above it, you’re making money.

Debt

Borrowing money. You pay it back with interest, but you keep ownership

Equity

Selling a share of your business to an investor. No repayment, but you give up a piece of future profits and ownership

Leverage

Using borrowed money to amplify your returns. Higher potential upside, but also higher risk

Capital Stack

The layered structure of debt and equity that funds a project. The people who take the most risk get paid last but stand to earn the most.

Target Market

The specific group of customers a business aims to reach within its products and marketing

Market Segment

A subgroup within a target market defined by shared characteristics (age, income, behavior, interests)

Demographic

Statistical characteristics of a population — age, gender, income, education, location

Psychographic

Characteristics related to values, attitudes, interests, and lifestyles — the why behind purchasing decisions

Brand

The identity, reputation, emotional associations customers have with a company — far more than a logo

Brand Equity

The value a brand carries beyond the functional value of the product itself

Positioning

How a brand defines itself relative to competitors in the customers mind

Direct-to-Consumer (DTC/D2C)

Selling directly to customers rather than through retailers or wholesalers

Wholesale

Selling products in bulk to retailers, who then sell to end customers

Omnichannel

A strategy that integrates multiple sale channels (online, retail, social) into seamless customer experience

Customer Acquisition Cost (CAC)

Total marketing spend ÷ number of new customers acquired

Customer Lifetime Value (CLV/LTV)

The total revenue a business can expect from a single customer over the duration of the relationship

Cost Per Mille (CPM)

The cost per 1,000 impressions of an ad — a standard metric for pricing digital advertising

Return on Ad Spend (ROAS)

Revenue generated ÷ advertising spend. The ROAS of 4x means $4 in revenue for every $1 spent on ads

Conversion Rate

The percentage of people who take a desired action (purchase, sign up, click) out of those who were exposed

Organic Marketing

Growth through unpaid channels — word of mouth, social media content, SEO, PR

Paid Marketing

Growth through paid channels — digital ads, sponsored content, paid influencer posts.

Influencer Marketing

Using individuals with established audiences to promote products to their followers

Ambassador Program

An ongoing relationship with influencers or customers who regularly promote a brand, often with affiliate codes or commissions

User-Generated Content (UGC)

Content created by customers or fans rather than the brand itself — reviews, content, videos

Social Proof

They psychological tendency to trust a product more when others visibly use or endorse it

Net Operating Income (NOI)

the core profitability of a property

Cap Rate

NOI ÷ Property Value

How much return you get each year compared to the property’s price

(Measure how good the real estate investment is)

Personal Guarantee

Developer’s promise to repay — your personal assets are on the line

Promote

Developer’s share of profits after investors get their return