1. 9-1 CHAPTER 9 LEARNING, MEMORY, AND PRODUCT POSITIONING

2. 9-2 The Nature of Learning and Memory

3. 9-3 Memory’s Role in Learning Memory consists of two interrelated components Memory consists of two interrelated components: 1.Short-term Memory (STM) a.k.a. working memory is that portion of total memory that is currently activated or in use. 2.Long-term Memory (LTM) is that portion of total memory devoted to permanent information storage. Semantic memorySemantic memory is the basic knowledge and feelings an individual has about a concept. Episodic memoryEpisodic memory is the memory of a sequence of events in which a person participated.

4. 9-4 Memory’s Role in Learning  STM is Short Lived maintenance rehearsalConsumers 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 concepts imageryElaborative activities serve to redefine or add new elements to memory and can involve both concepts and imagery. Short-Term Memory

5. 9-5 Memory’s Role in Learning  Schemas (a.k.a. schematic memory)  Scripts  Retrieval from LTM Long-Term Memory

6. 9-6 Learning Under High and Low Involvement

7. 9-7 Learning Under High and Low Involvement 1.Iconic Rote Learning 2.Vicarious Learning/Modeling 3.Analytical Reasoning Cognitive Learning

8. 9-8 Learning Under High and Low Involvement

9. 9-9 Learning, Memory, and Retrieval Memory interference 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.

10. 9-10 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

11. 9-11 Brand Image and Product Positioning Brand image Brand image refers to the schematic memory of a brand. Manufacturer Marketer Characteristics Users Usage Situations Benefits Perceived Product Attributes Brand Image

12. 9-12 Brand Image and Product Positioning 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 Perceptual mapping offers marketing managers a useful technique for measuring and developing a product’s position.

13. 9-13 Brand Image and Product Positioning Product repositioning 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

14. 9-14 Brand Equity and Brand Leverage Brand equity Brand equity is the value consumers assign to a brand above and beyond the functional characteristics of the product. Brand leverage family branding, brand extensions, or umbrella branding 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.