Question

Here is an example of a positioning statement for Volvo:

"For upscale American families, Volvo is the family automobile that offers maximum safety."

In this example, what serves as the frame of reference for the positioning statement?

Answer 1

The frame of reference in the Volvo positioning statement is 'the family automobile,' indicating that Volvo should be compared to other family automobiles on the basis of safety, a key selling point for upscale American families.

Step-by-step explanation:

The frame of reference in the Volvo positioning statement is the set of criteria or the category that consumers will use to compare Volvo to other options when making a purchasing decision. In the provided statement "For upscale American families, Volvo is the family automobile that offers maximum safety," the frame of reference is 'the family automobile'. This implies that the target customers, upscale American families, should compare Volvo with other family automobiles particularly in terms of safety which Volvo emphasizes as its unique selling proposition.

Understanding frames of reference is crucial for effectively positioning a brand within its market. The positioning statement usually sets the brand against its competitors based on certain attributes or values that are important to the target consumers. In this example, safety becomes a key factor for comparison among family automobiles targeted at upscale American families.

Answer 2

The correct answer is letter "D": Other family automobiles.

Step-by-step explanation:

In Marketing, a positioning statement is the segment a company uses to express how their product fits consumer needs. It can also represent the competitive advantage of the product letting know consumers why they ought to choose the company's product instead of competitors.

The frame of the positioning statement is the context of reference the segment is based on. Thus, in the example:

"For upscale American families, Volvo is the family automobile that offers maximum safety";

under the context of the family automobiles, Volvo is trying to promote its vehicles as the safest.