Material Direction Problems

I am trying to apply materials with a direction to them (vertical or horizontal). I copied the vertical wood material and edited the image to be horizontal. However, SketchUp does not display it correctly in the material swatches or on the model (it is still vertical instead of horizontal). Is this a bug or a simple fix? Please let me know - thanks.

I know how to use the position tool. I need the material to be in the opposite grain direction for use with V-Ray. Copying the material and then changing the direction in Photos or Photoshop used to work.

I see how that can work with positioning and then rotating it 90 degrees and it does translate into V-Ray properly. I tried doing what you suggested but the material swatch and actual material do not follow the edited photo.