Mgmt 159 UCLA course - spring 2026

all vocab works taken from pre-work readings from Breakout Learning + in class notes.

Marketing

how a business finds and connects with the people most likely to buy what it sells

target market

the specific group of people a business aims to reach.

market segment

a subgroup defined by shared characteristics.
ex.) demographic (age, income, location) or psychographic (lifestyle, values, interests)

organic marketing

is growth that happens without paying for ads

ex.) word of mouth, social media content that people share on their own, press coverage, and search engine optimization (SEO).

customer acquisition cost (CAC)

the total marketing spend divided by the number of new customers acquired.

Customer Lifetime Value

the total revenue a business expects from a single customer over the entire relationship.

Cost per Mille (CPM)

the cost per 1,000 impressions of an ad. It’s a standard way to price digital advertising and compare costs across platforms.

Return on Ad Spend (ROAS)

Revenue generated divided by advertising spend. A ROAS of 4x means you earned $4 for every $1 you spent on ads.

Conversion Rate

is the percentage of people who take a desired action (like making a purchase or
signing up for an email list) out of everyone who was exposed to the message. If 1,000 people see
your ad and 30 buy something, your conversion rate is 3%.

Social Proof

People are more likely to trust a product when they see others using it.

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, and 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 customer’s mind

Direct-to-Customer (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 sales channels (online, retail, social) into a seamless customer experience

Paid Marketing

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

Revenue

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

COGS

the direct cost of making or delivering the product. For a 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 the thing you sell.

Gross Margin

Gross profit as a percentage of revenue. Lets 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 the 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.