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In today’s modern and fast world Insurance is gaining a lot of importance. This obviously
means that the Insurance organizations are also prospering, yet they practice PR. So to know
what are the activities they perform I have taken the topic of PR.
The project includes only those theory aspects which are very essential for understanding the
art of PR very well.
Also it includes the PR campaign of only one company because in the field if Insurance LIC
is the one who has a very good PR campaign.
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HISTORY OF PUBLIC RELATION:-
Public Relations as a term was first formally used by ‘Thomas Jefferson’ in the year 1807
,while drafting his seventh address to the congress delegates when he scratched out the words
“State Of Thought” and wrote “Public Relations” instead. Informally Sir Walter Raleigh used it
even earlier during the Land Rehabiliation Movement , while persuading people from different
parts of America to settle in the rural parts of Virginia. This was the first organized effort to win
and mobilize public opinion. In India , the term of course gained importance later through the
Public Relations Society of India (PRSI) in 1958.
What Is Public?
Public is a group of similar ideas, an assortment of persons having the same interests,
problems, circumstances & goals. They vary in their forms & sizes they have a multitude of
wants & desires. Each group has its own likes & dislikes. Group can be classified as:-
Employees form a group/public, employers form another group, etc. Other members of the
public can be dealers, wholesalers, investors, etc. Each of these groupis a public & everyone
tries to attract a district audience with its varied tools & techniques. A public may also be made
up of a no. of individual’s who are unorganized & hard to identify but who for widely varied
reasons have a common interest in the matter at issue.
Today, however, when modern means of common make vast number of people aware of
controversial issues & common interests, publics tend to be large & impersonal. These publics
involve people who are not known to each other & are widely distributed over the country, or
even among a number of countries. The members of such public rarely meet each other face to
face or have much direct communication. The impersonal but powerful publics are numerous in
today’s high complex society.
But finally the public is any group of people who share common interest.
Relations:-
It is the outcome of mutual understanding derived from the process of sharing of common
interest where as relationship is the definite type of relation or interaction taking place between
two individuals, group or departments. To understand any relationship, therefore it is necessary
that one understands the wants of those involved.
The term PR is also applied to the profession responsible for handling such assignments.
Corporations, govt. agencies, politicians & entertainers are among these who use public
relations. Their publics vary from employees & shareholders to an entire community or
members of the news media. The communication between an organization & its public ranges
asimple news release to a sophisticated campaign featuring films, ad’s speeches & television
appearances. Such communication is aimed at gaining the goodwill of the public. The basis of
any effective PR campaign is public benefit. If an organization does not serve the needs of
public, the public will not support it. PR experts help an organization learn what the public wants
& then establish policies that reflect concern for public’s interests.
Frank Jefkins: Public Relations meanswhat it says- relations with the public. It is
practically a self-defining term. It aims to create and maintain confidence. It is a system of
communication to create goodwill. It produces that intangible quality or asset-goodwill, and
earns credit for achievements.
K.R.Balan: ‘The discipline which brings out the rewards in generating “mutual
understanding” and the risks involved in misunderstanding between individuals, groups,
governments and nations in this restless world the shape and content of which tend to be rapidly
changing.’
1. Human relations:
It is getting along well with the word public both internally or externally. No
person can work independently & everyone who works in an organization directly or
indirectly depends on one another.
2. Empathy:
Empathy means feeling with the other person to analyse others point of view & is
regarded as primary pre-requisite for a satisfying experience in a relationship where a
certain degree of depth of understanding is expected.
3. Persuasion:
There are 2 forms of interaction between individuals or groups
a) Force or compulsion b) persuasion.
If one party compels another to do something instead of persuing him this is called
Depotism. It is against the principle of proper conduct sanctioned by society. A sense of
human interest on the person who is being persuaded will understand & appreciate the
cause & effect of this action.
4. Dialogue:
It is a conversation with purpose. It is not a bargain basement transaction but it is
a low form of negotiation. Dialogue is a reasonable exchange of ideas bringing into view
a new form of knowledge, the use of dialogue is for influencing behaviour like selling
goods or inspiring innovative ideas.
9. Employee Publications: The public relations department has to prepare and publish employee
magazines, newspapers, bulletins, management communications etc.
10. Guest Relations : The department must undertake guest reception activities.
1. He must hold a mirror to his organisation so that it can see where it actually stands and
how it really looks in the opinion of the public. Thus is one of his essential duties, and in most
cases, it provides the organisation with knowledge of itself, which is nothing short of
astonishing.
2. He must collect all available data, so to have a sound knowledge of all his details and
inter-relationships on which to work out a clear suggestion for building up the picture to be
presented.
3. In doing this, he must help to overcome the many prejudices and biased opinions that
are almost always present, and he must be frank in pointing out and attempting to eliminate the
weak points and negative aspects of the organisation's projects or policies.
4. All this forms the basis for the public relations action which must then be carried into
effect as a long term strategic plan founded on exact knowledge of the process of communication
and making full use of all means of communication.
5. In carrying out the plan, he must keep in mind the fact that public relations is always a
two-way communication. Every public relations statement has an echo, which must be regarded
as the feedback in cybernetics. Experience shows him how the message was received, and from
this he must draw his own practical consequences, in complete disillusion and if necessary with
readiness to self-criticism. This is the decisive point in all public relations activities.
6. As a consequence of a1I these measures there gradually comes into being in the inter-
relationship between the communicator and the public under the painstaking control of the public
relations expert a large measure of conformity and harmony between the two poles. This is the
sense and the purpose of public relations activities.
VARIOUS PUBLICS FOR PUBLIC RELATIONS
1. Stockholders Relations
The owners of the company are the shareholders with whom the company always has to
communicate about various matters. Most companies use personal visits, telephone calls, mailing
and supplementary reports to keep shareholders informed, interested and satisfied.
Communication with them may include reports, matters on corporate meetings,
dividend enclosures, magazines, special mailing, notices, resolutions,
minutes, periodic correspondence, financial matters, press releases etc.
Communication with the shareholders may cover many subject matters
such as :
1. Issue of share certificate;
2. Share transfer application and procedure;
3. Certificate of transfer;
4. To mobilise funds, pay dividend, interest on fixed deposits received;
5.To issue dividend warrant, proxy form, dividend coupon;
6. To issue notices, agenda of the various meetings;
7. To respond to correspondence received from them;
8. Correspondence relating to calls, forfeiture, transmission;
9. Communication on matters relating to statutory requirements etc.
10. Describing organisational problems and objectives of the company in terms of special
current developments in the company' s folder and other stockholder communication.
11. Drafting and circulating to all stockholders a transcript of highlights of the annual
progress at the company's annual meetings.
12. Giving reponse to each stockholder's inquiry which must be prompt to create
goodwill.
13. Informing by way of circulating or distributing to all shareholders occasional reprints
dealing with developments vital to them.
2. General Public Relations
It is with effective communication and through appropriate media that a company
maintains contacts with the public. It is the means to create and build goodwill. It also helps as a
driving force to reach the public, and brings the company and the public together, linking with
society in general. Maintaining external communication facilities through several media of
verbal and written contacts with the public in general.
It is not possible to build a satisfactory public image for the company. The
public should be informed about various products of the company and their uses; comparative
advantages, price differentials, product, after sale services and changes must be communicated
promptly. Qualitative communication ensure the promotion of a positive favourable atmosphere,
develops friendly and confident feelings towards the company and its product.
(a) Preparing and distributing new releases concerning the company to create public
interest.
(b) Public meetings, press conferences between the company and ~
representatives of the press, radio and television. '
(c) To have a regular and prompt press information service and to
answer enquiries from the press and radio.
(d) Releasing periodic advertisements in the mass media circulating
throughout the country, and also in respect of certain commodities
and information to customers directly.
(e) General public communication covers personalised mass mailings to
the editors of newspaper, magazines, radio and television directors,
educational institutions, religious institutions, public relations offices,
officials and other local opinion leaders.
(t) Motion pictures are other important media for public communication
which portrays the company's operations highlighting the economic
advantages of the company's area of operations.
Mass media are the gateway of the company for communication with
the public. The public relations department of the company is mainly
responsible for promoting goodwill among the outside public.
3. Customer Relations
An effective system of communication should provide opportunities for customer
information. The customer is the ultimate object whose satisfaction and goodwill are of the
utmost importance for the success of an organisation. In carrying out the sales function of
planning, the management must communicate with customers. There were times when the
customer was not the central figure. But today the customer is the kingpin and sovereign of the
market whose needs and satisfaction, and the winning of whose goodwill, is of prime importance
in these days of
competitive setup. These must be communicated promptly. It is the communication which
establishes the contacts with the customers. Customercomn1unication helps to establish a
relationship with customers who buy and are the sources of products. The media used for
advertisements can also be used effectively to reach the customers. It is the responsibility of
communication:
1. To prepare welcome letters, personally addressed, signed by the chief executive officer
to all old as well as new customers.
2. Customer information should include helpful and desirable information concerning
prices, uses, after sale facilities etc.
3. Media like pamphlets and booklets printed in an attractive manner summarising the
company's product etc., are the purpose of communication.
4. Enclosing handouts, progress reports to each bill or to each correspondence mailed to
customers. This acts as a repetitive reminder to the customer about the company.
5. Prompt response to all enquiries made by the customer promotes and builds confidence
and goodwill. Effective written communication promotes a friendly understanding of
company policies.
6. Preparing brochures and other informative folders directed to specific customer groups
like fanners, small business, women, and other special users.
4. Government Relations
Communication with the government and its departments is another important dimension
of external communication. Business communication with the government covers several
dealings touching many government departments. A corporate enterprise has to communicate
with the Registrar of Companies, Controller of Capital Issues, finance department, industrial
department and labour department. The relations of a company with the government are many
sided. Correspondence with the
government may cover export-import matters, foreign exchange dealings, listening, registration,
taxation matters also. A company has to file a number of documents to various departments of
the goverment. Filing of annual returns and tax returns are regular activities.
Business houses have to consider the national objectives as well as the national priorities
of economic development as indicated in Five Year Plans and other policy statements and
resolutions. There is always if routine communication between the government and business on
several other matters like wage policy, foreign policy, industrial policy etc.
5. Dealer Relations
A communication network should not overlook the importance of dealer communication.
The dealer is a trader who carries on the business I of buying and selling and other dealings. A
dealer effects a substantial turnover involved in buying, selling, supplying or distributing goods
directly or indirectly for cash or deferred payment or on commission. A dealer is an important
party in external communications. The relation of the company with its dealers, like those of
other outsiders, is said to be dealer communication. The quality of the product, the trading policy,
practice, procedure and the image the dealers to promote are the fundamental
factors which must be given major consideration in the subject matter of communication. The
method of communicating with the dealer will vary depending upon the nature of the product,
distribution and media of communication. Communication with a dealer is quite different when
the
distribution is made through agents.
Conferences and meetings with dealers are the usual media of oral communication.
Written communication through letters is often the common method. Another medium of
maintaining close contact with the dealers is by providing all the dealers with regular copies of
an external house journal or news sheet. This carries relevant infonnation from the business
house to the dealers, wholesalers, stockists, agents etc. The journal generally contains messages
on display, promotions, uses, benefits, and comparative superiority of the product. It also covers
all such matters
calculate toimprove the dealer's turnover, and as a consequence, mutual profits. Direct mail is
also used to maintain direct contact with the dealers.
The public relations officer of the company gives guidance and help to
promote sales. He is a liaison between external parties and the company.
6. Inter-organisation Relations
No business organisation can exist in isolation without connections and dealings with
other sister business organisations. Inter-corporate communication implies a process of
information exchange between companies. A company of a particular industry may have links,
direct or indirect. Inter-corporate loans, inter-company investment, inter-locking directorship,
inter-corporate dividends, inter-corporate holdings and inter-corporate transactions etc., are all
examples of the existence of inter-corporate communications. Information exchange between
companies may take place on many matters like cost, process of production, methods
of production, new methods of production etc.
It has been observed that a firm simply cannot exist or survive unless
it is related with other firms in the industry. Inter-industry and intra-industry information
exchange is necessary to make comparison and to run on smooth and competitive lines. Business
houses undertake much inter-company communication to bridge the communication gap between
the organisation and outside entities. Very often one notices that companies resort to inter-
corporate and inter-institutional communication. Companies are also involved in information
exchange to know the various sophisticated techniques adopted, the handling of production,
appraising
people about the organisation's march, social responsibilities discharged and getting their
employees informed about the movement of employees in comparable organisations.
7. Complaints
Public relations firmly believe in openness and honest communication. Public
complaints, suggestions and response constitute a complaint communication system. The public
is any group of people which shares a common interest. An organisation with its effective
communication talent has to establish and maintain mutual understanding between an
organisation and its public. Complaints made by the public are to be attended to, and suggestions
offered should be considered. A complaint
is really a favour done to the company.
Correspondence with the company is a good means of communication, in particular, face-
to-face conversation is still effective. Acknowledging a complaint and giving a decision without
delay promotes goodwill. It is social responsibility of business as a form of activity to entertain
and be responsive to complaints and suggestions. The social responsibility of a business entails
obligations which a business owes to society. Communication sets in all spheres of enquiries,
complaints and suggestions.
ESSENTIAL QUALITIES OF GOOD PUBLIC RELATIONS
1. Mental ability:
A combination of planning sense, foresight, orderliness of mind and judgement, which
will result in willingness to think straight, and in a thoroughness and promptness of decision.
The need for public relations is clearly explained n the points below –
1. Communication :
The means for communication have reached , technically ,almost a stage of perfection
.It is today financially possible for practically everybody –at least in the advanced
nations- to receive information. The level of education of a wide circle of the population
is rising rapidly and this ensures a steady increase in the capacity for receiving
information which is guaranteed by the ‘constitution.’ Adequate information is, therefore,
theoretically possible although it is by no means guaranteed in each individual case.
Whether we are correctly informed is far more difficult to answer. Many books, many
discussions in academies in radio and television in India and abroad, and countless
lectures, not excluding those in ‘Information Society’ and ‘New Information Order’, as
far as we are aware, a correct reply is yet to be received. The only answer, according to
the philosopher Karl Jaspers given in 1963, is
“we in the Free World have the chance to share the responsibility and find
ways of receiving the best possible information.”
3. Information Load:
Also called message load or quantity, The sceptic will, of course, draw our attention
to the flood of information to which we are all exposed today. The proper reply to this is
that this flood is largely without direction and that it is incomplete or inaccurate.
Information must be prepared. Essential information must be separated from trivial
matter, and the interest of the receiver must be aroused in the right direction. In the
organization that ignorance, the inability to appreciate or organization , superficial
knowledge is extremely likely to result in dislikes, dissatisfaction and outright rejection
with all their disastrous concequences. What we require is a fair means of information
which eliminates existingor awakened suspicions, which builds up understanding, and
creates confidence. This is what we call Public Relations.
From all these facts, it is clear what the purpose of this ‘Activity in,
for, and with. The public' is : To act and not to react; to create an
atmosphere of confidence by an active information policy, the passive part
of which consists in answering queries ; to inform the public and exert
influence towards the inside as a form of corporate and social counter control to establish direct
or indirect connections with the public, to fulfill a kind of interpreters’s function towards the
public and to control communicative reaction.
Advertising
Advertising is publicity but not all publicity is advertising. It is the business of selling
goods, services and ideas by inducing people to want them. It is drawing attention of public by
big public announcement t o a commodity or service with the aim of selling it.
1. Corporate Advertising
Publicity
Propaganda
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