Learning, Memory, and Product Positioning 09 CHAPTER Learning, Memory, and Product Positioning McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

PART III: INTERNAL INFLUENCES 9-2

Learning Objectives Describe the nature of learning and memory Explain the types of memory and memory's role in learning Distinguish the different processes underlying high- and low-involvement learning Summarize the factors affecting information retrieval from memory Understand the application of learning to brand positioning, equity, and leverage 9-3

Consumer Behavior In The News… Can a brand make consumers more creative? To find out: Three groups were flashed a different computer brand logo and then asked to write down all the uses of a brick they could think of. Which computer logo generated the most creativity (more uses for a brick)? No Brand (control group) IBM Apple Source: B. S. Bulik, “This Brand Makes You More Creative,” Advertising Age, March 24, 2008, p. 4 9-4

Consumer Behavior In The News… If you said Apple you are correct. The number of uses for a brick were as follows: Apple: 7.5 No Brand (control group): 6 IBM: 5 Why? Brand image (e.g., creativity) may prime a trait that taps our self image and affects our behaviors. Note: Flash was 30 milliseconds or subliminal and thus participants didn’t know or see the brand logo, preventing conscious biasing of effort, etc. Source: B. S. Bulik, “This Brand Makes You More Creative,” Advertising Age, March 24, 2008, p. 4 9-5

The Nature of Learning and Memory 9-6

Memory’s Role in Learning Memory consists of two interrelated components: Short-term Memory (STM) a.k.a. working memory is that portion of total memory that is currently activated or in use. Long-term Memory (LTM) is that portion of total memory devoted to permanent information storage. Semantic memory is the basic knowledge and feelings an individual has about a concept. Episodic memory is the memory of a sequence of events in which a person participated. 9-7

Memory’s Role in Learning Short-Term Memory STM is Short Lived Consumers must constantly refresh information through maintenance rehearsal or it will be lost. STM has Limited Capacity Consumers can only hold so much information in current memory. Elaborative Activities Occur in STM Elaborative activities serve to redefine or add new elements to memory and can involve both concepts and imagery. 9-8

Applications in Consumer Behavior Duracell’s unique ad placement is a perfect example of imagery designed to enhance elaborative activities regarding the brand. Courtesy Ogilvy & Mather Kuala Lumpur 9-9

Memory’s Role in Learning Long-Term Memory Schemas (a.k.a. schematic memory) Scripts Retrieval from LTM 9-10

Memory’s Role in Learning A Partial Schematic Memory for Mountain Dew 9-11

Learning Under High- and Low-Involvement 9-12

Learning Under High- and Low-Involvement Classical Conditioning Classical conditioning is the process of using an established relationship between one stimulus (music) and response (pleasant feelings) to bring about the learning of the same response (pleasant feelings) to a different stimulus (the brand). 9-13

Learning Under High- and Low-Involvement Operant Conditioning Operant conditioning (or instrumental learning) involves rewarding desirable behaviors such as brand purchases with a positive outcome that serves to reinforce the behavior. 9-14

Learning Under High- and Low-Involvement Shaping Can Be Used in Operant Conditioning 9-15

Learning Under High- and Low-Involvement Cognitive Learning Iconic Rote Learning Vicarious Learning/Modeling Analytical Reasoning 9-16

Learning Under High- and Low-Involvement 9-17

Learning, Memory, and Retrieval Marketers want consumers to learn and remember positive features, feelings, and behaviors associated with their brands. What happens when consumers forget? Desired response decays or dies out if not reinforced. Conditioned Learning Extinction Information that is available in LTM cannot be retrieved. Cognitive Learning Retrieval Failure 9-18

Learning, Memory, and Retrieval Forgetting over Time: Magazine Advertisement Source: LAP Report #5260.1 (New York: Weeks McGraw-Hill, undated). Reprinted with permission from McGraw-Hill Companies, Inc. 9-19

Learning, Memory, and Retrieval Strength of Learning Memory Interference Response Environment 9-20

Learning, Memory, and Retrieval Strength of Learning Strength of learning is enhanced by six factors: Importance Message Involvement Mood Reinforcement Repetition Dual Coding 9-21

Learning, Memory, and Retrieval Impact of Repetition on Brand Awareness for High- and Low-Awareness Brands 9-22 Source: A Study of the effectiveness of Advertising Frequency in Magazines, 1993 Time, Inc. Reprinted by permission.

Learning, Memory, and Retrieval Repetition Timing and Advertising Recall Source: Reprinted from H. J. Zielski, “The Remembering and Forgetting of Advertising,” Journal of Marketing, January 1959, p. 240, with permission from The American Marketing Association. The actual data and a refined analysis were presented in J. L. Simon, “What Do Zielski’s Data Really Show about Pulsing?” Journal of Marketing Research, August 1979, pp. 415-20. 9-23

Learning, Memory, and Retrieval Memory interference occurs when consumers have difficulty retrieving a specific piece of information because other related information in memory gets in the way. A common form of interference in marketing is due to competitive advertising. Competitive advertising makes it harder for consumers to recall any given advertisement and its contents. 9-24

Learning, Memory, and Retrieval What Can Marketers Do to Decrease Competitive Interference? Avoid competing Advertising Strengthen Initial Learning Reduce Similarity to Competing Ads Provide External Retrieval Cues 9-25

Brand Image and Product Positioning Brand image refers to the schematic memory of a brand. Manufacturer Marketer Characteristics Users Usage Situations Benefits Perceived Product Attributes Brand Image 9-26

Brand Image and Product Positioning Product positioning is a decision by a marketer to try to achieve a defined brand image relative to competition within a market segment. An important component of brand image is the appropriate usage situations for the product or brand. Perceptual mapping offers marketing managers a useful technique for measuring and developing a product’s position. Dyson Uses Advanced Technology to Position its Air Multiplier (fan) YouTube Spotlight 9-27

Brand Image and Product Positioning Perceptual Map for Chocolate Candy 9-28

Brand Image and Product Positioning Product repositioning refers to a deliberate decision to significantly alter the way the market views a product. This can involve level of performance the feelings it evokes the situations in which it should be used, or who uses the product 9-29

Video Application The following Video Clip demonstrates how Tumbleweed repositioned itself from a Mexican restaurant to a southwestern grill. 9-30

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Brand Equity and Brand Leverage Brand equity is the value consumers assign to a brand above and beyond the functional characteristics of the product. Brand leverage, often termed family branding, brand extensions, or umbrella branding, refers to marketers capitalizing on brand equity by using an existing brand name for new products. 9-32