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Design of study

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.

Objectives behind the project:-

1) To get an insight through the concept of PR.

2) To know what are the activities performed by LIC.
3) To see whether what is being described in the theory of PR whether it is exact
or not

Limitations of the project:-

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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notes, project reports etc.


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.

Meaning And Introduction:

Public Relations, commonly called as PR is an activity aimed at increasing
common & understanding between an organization or individual & one or more
groups called Publics”.

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 group is 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.

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 a simple 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.

PR generally is practiced through:-

1. Corporate PR dept:- In a corporate department, specialists handle corporate

PR activities for only that company.
2. PR Agencies:- In agencies specialists carry out PR activities for several

3. Public Information Departments:- Non-profit organizations like colleges and
Government agencies have public information departments that work to
strengthen the image of the organization.

Definitions of PR by some renowned people:

Frank Jefkins: Public Relations means what 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.’

Editor of PR news: PR is the management function which evaluates public

attitudes, identifies the policies & procedures, of an orgnisation or an individual with
pubic interests & plans & executes a program or action to earn public understanding
and acceptance.

Interpretation of the above definition-

1. It measures, evaluates & interprets the attitude of various related public.
2. It assists management in defining objectives for increasing public
understanding & acceptance of orgnisations products, plans, policies &
3. It equates these objectives with the interests, needs & goals of various related
4. It develops, executes & evaluates a program to earn public understanding &

Elements of Public Relations:

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


The main objective of public relations is to establish good understand-

ing by sharing a common problem or interest with the public. By public we
here mean both an internal public and a public external to the organisation.
Mutual understanding can be established only by sharing a common
interest, by communication and relations.
However, the following are the broad objectives of public relations:

1. To promote mutual understanding.

2. To avoid the risk involved in misunderstanding.
3. To win friends.
4. To influence people.
5. To change the behaviour and attitude of the public.
6. To enhance the patronage from the various sections.
7. To help in fund raising.
8. To persuade individuals, groups etc.
9. To connect misconceptions and clarify on criticism of its policies
and practices.
10. To promote goodwill.
11. To create and maintain the image or reputation about the company.
12. To forestall attack by the competitors or opponents.
13. To undertake a public relations education program.
14. To help the public to love life and work for better or for worse
without conditions.
15. To improve internal staff relations.
16. To liaise, counsel and advise.
17. To provide information about the activities of the company to the
press and writers.

18. To prepare and supply the public with information about the
organisation like price, quality, export, employment, and other
special features.
19. To ascertain public opinion, conduct opinion research, and under-

stand public attitudes on the organisation, profession and practice.

20. To sponsor dealer and distributor relations schemes.
21. To undertake programmes like sales training courses for retailers,
22. To establish press relations, publicity articles preparation, press release,
23. To communicate with the employees on their benefits, accident prevention
labour relations and collective bargaining.
24. To undertake a campaign of public education about an industry or
profession and its contribution to the public.
25. To establish relations with federal and state legislators, agencies.

Functions Of Public Relations

The functions that are to be performed by a public relations department may

differ from organisation to organisation depending upon the nature and activities of a
particular organisation. However, certain standard functions have emerged as
common in most balanced departments. They are discussed below:

1. Policy: Public relations policy is required for every organisation.

A policy is a statement of guidelines to be followed in the company. The
department has to develop and recommend corporate public relations
policies. It has to contribute the public relations view point which helps in
the formulation of decision. Its function is not merely to provide the policy
mainly to the top management but also to other sections and divisions.

2. Publicity : Corporate publicity is necessary to interact with the

public. The department has to undertake the development and issuance of
announcements of corporate activities to external communications media.
It has to handle inquiries from the press. It is part of the functions of the
department to develop and place promotional publicity about the company
as a whole or any of its units.

3. Product Publicity : Corporate publicity is different from the

product publicity. In this, focus is on the products and how to popularise
the product. This includes both new products as well as existing ones. It
includes the announcement of new products through the editorial channels
of the communications media. The department has to develop and execute
the promotional product publicity campaigns.

4. Relations with Government : Relations with government
cannot be overlooked. In all spheres of activities the government inter-
feres, regulates, controls and supervises. It is necessary to maintain liaison
with appropriate governmental departments. This liaison covers both the
local level, state level and national level. Besides, governmental relations includes:

(i) advise action as needed.

(ii) report trends in government affecting the company.
(iii) help in preparing and directing corporate appearances before investigating
bodies of legislative hearings.
(iv) direct programmes designed to promote the company's point of view in
legislative or regulatory matters.

5. Community Relations: Community contacts should be planned. It is the

performance and/or coordination of corporate 'good neighbour' activities, including
compliance with environmental protection standards, fostering equal employment
oppurtunity, cooperating in urban improvement programmes, and developing
community understanding of a company's problems and needs.

6. Shareholders Relations ; Relations with the corporate stockholders is more

important to attract public money. This takes the form of communication between the
company and the shareholders in particular.

Also the investment community in general. It is necessary for the development

and acceptance of the company among investors by broadening the exposure of the
company's policies and financial results in the investment community. This function
includes preparation of annual reports, quarterly reports, dividend cheque inserts etc. It
has to plan and stage the annual meetings of stockholders and appearances
before meetings of security analysts.

7. Promotion Programmes : Public relations promotion programmes should be

formulated and implemented. This may broadly cover institutional promotion
programmes designed to build corporate acceptance of key policies, institutional
advertising, public relations literature and special events.

8. Donations: A corporate donation policy should be developed for company
contributions- Various aspects involved in this function are processing requests for
donations administering company's foundation, and the conduct of employees'
solicitations for approved drives.

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.

11. Coordinating Activities.

12. Conveying and Interpretation.

13. Advisory Functions.

14. Instructing by doing.

15. Public Relations Education Programme.


The task of the relations expert is applied sociology. In other words,

he must advise his clients bearing in mind the essential features of sociology and
psychology. In particular:

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.


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
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.

Audio-visual, direct mail, sales promotion, advertisements, news bulletins,

annual reports, posters, hoardings and pamphlets are few of the many media used to
reach the public. Public information consists of:

(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.

Government communicates national objectives, priorities, achievements and

programmes through the mass media like television, radio, film and ; through the print
media like newspapers, magazines, Five Year Plans, budgets, annual reports, special
economic survey reports, statistical bulletins, handbooks etc. A firm has to deal with
all correspondence in which it is concerned and interested.

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 to improve 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

In present day competitive structures a firm is expected to catch up on the

efficiency attained by competitors, and make efforts to reach and exceed them.
Communication between the organisations on various functional performances
highlights the points of strength and weakness in individual company performance.
Inter-firm information exchange facilitates inter-firm comparison, which provides an
objective and realistic measurement of comparable efficiency of the firms inter se. The
inter-firm messages on operating performance, financial results, product cost structure,
sales trend, market potential etc., in relation to firms of similar size, capacity, nature,
industry or trade present a vivid picture of comparative strong points and weak points.
The firms can improve their activities accordingly. Firms thus supply information
reports on their activities in the form of ratios, figures etc.

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.


Without reaching for the moon, tentative analysis of experience with

a large number of public relations managers has indicated, in a general
sense, the following as the basic qualities required in successful managers:

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.

2. Ability to see the other person's point of view, and to be as critical

of oneself as of others; this is the basis of the ability to work with other

3. Integrity, in the sense of mental honesty.

4. A restrained self-confidence, coupled with initiative and


5. A balanced temperament particularly the absence of such traits

as emotional instability, a sense of marked inferiority, forcefulness and
self-centred outlook.


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.

2. New Information Order:

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 existing or awakened suspicions, which builds up understanding,
and creates confidence. This is what we call Public Relations.

4. Mutuality and Understanding: Going by the definition of public

relations, the mutuality is based on interaction between consideration for
public opinion, and the need of the communicator or organization to inform
or establish contact. Understanding is created by providing insight into, and
reporting on all essential matters. Confidence is cultivated by bringing the
aim of the organization into harmony with the public interest, thus winning
and maintaining goodwill among the general public.

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 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.

Advertising may also be defined as the purchase of space in the

press, or time over the radio and television to promote the sale of products
or ideas, and to build up the corporate image of an institution. Advertising is
one of the forces of modernisation and cuts across Ideologies.

Any advertising campaign should contain in it the broad ingredent of

public interest. The specific categories of public interest advertising are:

1. Corporate Advertising

It explains the continuing research, engineering and management

efforts a company makes to improve its products or services. It can be
called the voice of management speaking not only to customers, but also
to investors, suppliers, distributors, employees -present and potential - and
leaders of public opinion.

2. Public Relations Advertising

It discusses the problems, policies, social philosophy, or economic

goals of a company or industry, illuminates some aspect of the Nation's
scene; discusses the basic principles of its enterprise, notably with respect

to foreign collaboration for the reader to shed light on the economy or the
society in which he lives.

3. Public Service Advertising

It is designed to promote voluntary individual actions to solve national

problems such as better roads, prevention of floods, better health care,
family planning and rehabilitation of the handicapped. Also encouraging
cultural activities, tourism, secularism, buying of Unit Trust Certificates,
voting in national elections, reducing prejudices, and other worthwhile


Publicity is the technique of 'telling the story' of any organisation or

cause. It is the umbrella term which in its meaning covers all the
techniques employed to get a story across to the public. It is weapon of
war, an instrument of sales, a tool of politics. Basically publicity is news.
It has to be news, that is, be of interest to be carried. Publicity includes
advertising because advertising, like publicity, tells the story. But in
general usage, publicity is used to describe those expressions where the
medium is not paid for; whereas advertising consists of paying for the
medium to get the story told.

Advertising vis-a-vis Publicity

If public relations may be broadly considered, as it is by many, as the

act of right living, or 'being a good citizen', publicity is the act of telling the
world about right living or good citizenship.
The role of public relations is to make a light worth projecting. The
art of publicity is the act of projecting the light.


Propaganda describes the political application of publicty and adver-

tising ,also on a large scale, to the end of selling an idea, cause, or
candidate or all three.
It was first given general currency by the Roman Catholic Church
to refer to the dissemination of its doctrines.

There are two types of propaganda. The rational propaganda in

favour of action that is in consonance with the enlightened self-interest of
those who make it and those to whom it is addressed. The other is non-rational
propaganda that is not consonant with anybody's enlightened self-interest but is
dictated by, and appeals to, passion.


The Oxford English Dictionary calls it the management of interna-

tional relations by negotiation', or, 'the method by which these relations
are adjusted and managed.'
Sir Ernest Satow's 'Guide to Diplomatic Practice', a sound work
which has been the Bible of British Diplomats for many years, wrote
Diplomacy is the application of intelligence and tact to the conduct of
official relations between the governments of independent states.


Promotion describes commercialisation of publicity, and publicity

and advertising jointly, usually on a grand and co-ordinated scale, to the
end of selling a product or products.

Campaigns consist of concerted, single-purpose publicity programmes,
usually on a more or less elaborate scale, employing co-ordinated publicity

through a variety of media, aimed at a number of targets, but focussed
on specific objectives. A campaign objective may be the election of a
candidate, the promulgation of a political issue or cause, the reaching of
a sales goal, or the raising of a quota of funds.

Lobbying is a kind of tool generally used by a group of persons like

members of legislatures who conduct a campaign outside the legislative
chamber, that is, at the lobby, to influence members to vote according to
the group's special interest; it is also used by shareholders of business
corporations during the Annual General Body Meetings to pass a
'resolution' or elect a 'director' to the 'board' in the interests of a group
of shareholders.
In a basic sense, lobbying entails the exertion of influence, smooth
and measured pressure and any other exercise of persuasion-cum-
pressure. In essense, it means a group putting its point of view forward
in an attempt to win the other group's support.

Public Affairs

Public Affairs may be defined broadly as a significant and substantial

concern and involvement by individuals, business, labour, foundations,
private institutions and government with the social, economic and political
forces that singly or through interaction shape the environment within
which the free enterprises exist.

Acceptance of a product
Acceptance of a product goes through five stages:
1. Awareness :
The individual learns about the existence of a new idea or practice but
has little knowledge of it.
2. Interest:
The individual then develops interest in this idea and then gets more
information about it.
3. Evaluation
The individual makes mental application of the idea and weighs its
merits for his own situation. He obtains more information about it and then
decides to try it.
4. Trial:
The individual actually tries the idea of practice usually on a small
scale. He is interested in how to apply practice, techniques ,conditions for
5. Adoption :
If the individual likes the idea he accepts it for a fall-scale and then
adopts it.

Mediums of Public Relations


Letters which enable one person to reach another despite the

limitations of time that can cut down on personal visits and telephoning,
are among the most ancient and perhaps still the most important media of
mass communications. It has been said that letters are the only selling
medium that, if taken away, would disrupt the entire modem business

They are sent out with every kind of enclosure; pamphlets and
leaflets, order blanks, samples, pictures, return post cards, and many
The well-written letter has a major advantage over all other media
it is directed personally to an individual. If it designed to please and flatter
him rather than to irritate him as an invasion of his privacy, it commands
his attention for a little while perhaps just long enough to motivate him to
do what the writer wants him to do.
Mail is a personal thing. A person likes to receive a letter written for
him as well as addressed to him. He likes to express regard for him ,offer
him a better job, make a promise or enclose a cheque. When a publicist
sends out a letter written for the client's benefit rather than for the
recipient's, privacy is being presumed upon. The recipient may resent it.
He may throw the letter away without reading it, or read it only to turn
against the writer.
Individually written and addressed letters have long constituted (he
backbone of international communication. Offset letters are being used
in increasing volume to establish a direct speedy line of communication
with specific publics- Letters are used on a regular or spot-news basis to
reach employees, dealers, alumni, or workers in a fund-raising or
legislative campaign.

The Telephone

A telephone call is more effective than a letter as a last minute

reminder or an incitement to action. The telephone is good
fo getting a person to do something he should do although he might prefer
not to such as attending a meeting. He can dodge a letter more easily than
the personal commitment of a personal conversation. But for a technical
or monetary commitment both parties will find it advisable to put it in
writing to seal the telephone agreement.

The secret of success in a large-scale telephone campaign is to

obtain reliable telephone operators - people with pleasing telephone
personalities and the persistence to keep after each number until they
actually reach the proper party and drive the message home.
The maximum effect is obtained in a telephone drive when every
prospect is reached over the phone by a personal acquaintance. The
telephone being an instrument of human contact, courtesy and tact in its
use are important in winning the understanding and goodwill of the person
on the receiving end. The telephone personality of an organization and its
employees is a vital aspect of its relations with the entire community, with
many different publics, and with every individual connected by phone.

A glaring telephone discourtesy is to have a secretary put through a

call and then hold up the party being telephoned because the caller has
become tied up with something else. It is better for people in business to
make their own calls.
People in business can win goodwill by answering their own tele-
phones if possible, it is not pleasant telephone manners to have a secretary
ask every caller 'Who's this? 'Who are you with? and What's the call about?

Word of Mouth
Word of mouth spreads like wild fire. If the subject and content are
right, it can burst into spontaneous combustion just as an entire forest may
suddenly be overrun by conflagration. Through word of mouth, rumour
and innuendo may spread with extreme speed and spontaneity if the
subject is close to the emotion of people. Feeling and thought must quickly
take wing on word of mouth. In stimulating a word-of-mouth campaign
the important thing is to present subject matter of such interest as to cause
people to repeat it to others.

Word of mouth is perhaps the most subtle of publicity tools. It takes

the form of gossip and slander at times if timely action is not taken to
control it. Though it is the hardest to control, all our efforts need to be
made. Its manipulation is not subject to cut-and dried mechanics, as is the
case with so many publicity media and instruments. The things that
contribute to word-of-mouth circulation are:

1. A spectacular and successful event or product.

2. A spectacular publicity or activising campaign.
3. A good catchword or slogan.
4. Capitalising on a mass trend or catchword.


The commercial field has long made good use of newsletters. These
have a bright future. Newsletters tend to fit the times these days. People
have fragmented interests. There are certain things they want to know a
lot about, and other things they don't want to hear anything about.
Newsletters have the advantage of speed. They are quick to read.
The public relations use of newsletters is spreading rapidly into non-
profit fields as well. Associations and professional societies particularly
find the formal effective. Its use in politics and lobbying is burgeoning.
With this format, users can reach constituents quickly on matters having

both urgency and importance. The person-to-person nature invites

Post Cards

Post cards are quick and easy to prepare, quick and easy for the
recipient to absorb, economical to mail to constituents and an effective
adaptation of direct mail to reach large numbers of people with a message
that can be punched home in a paragraph.

In many campaigns, a large number of individuals can be stimulated

to sign and then send post cards to their own friends and contacts. This
personal touch has more influence with the recipient than would a
communique from a stranger.

Public Address System

Public address systems at meetings, shows, gathering of employees

or mass audiences of any kind make it possible mechanically to project he
human voice before a large number of people.
Mounted on a mini truck or other mobile auto, the public address
system can be transported from place to place, presenting speakers and
programmes as it goes, and reaching a widely distributed audience. Sound
tracks can also be rigged up at programmes in lieu of a permanently
installed public address system. A portable bullhorn affords great mobility
wherever amplified sound is needed.

A recording makes it possible to 'capture' a speech or radio

programme and replay it by radio before an audience or over a public
address system anywhere. Some recordings are made on the spot at
special events. In other instances, special programmes are deliberately
produced at are cording studio.


Charts are by far the most-used visual aid. A chart may be painted,
printed or drawn. It must be large enough and simple enough to be seen
and comprehended in the presentation setting.

Flannel Boards

Flannel Boards consist of aboard covered with felt. Sticky-backed

visuals are placed on the surface, allowing a speaker to put some
movement and flexibility into an otherwise static presentation.

Magnetic Boards
Magnatic Boards are much like flannel boards, except that magnets
permit the use of heavier three dimensional visuals.

Video Cassette, Audio Cassette and Disc Recordings

These are useful in overcoming some of the difficulties of working

with a diffuse and loose-knit organisation. They assure that all concerned
get exactly the same message with the desired visual and/or audio
emphasis. Generally, these video cassettes, audio cassettes or disc
communications, though carefully prepared, are modest in technique.
Intentionally, they do not have the ambitious-or cost-associated with full
scale productions.


An executive or a demonstrator can write his 'blackboard' notes

across a longdistance through a transmitter unit hooked up by telephone
lines with a projector unit and screen.

Tele Lecture

This is a useful technique for making an audio/visual presentation at

a distance. With the help of the telephone company there is a hook-up
from a speaker's office, a meeting or classroom, where visuals can be
shown while the speaker is heard. Members of the audience can question
the speaker through a two-way hook-up. This permits the speaker to
'appear' at many locations without the full time or expense of going there,
and it permits remote groups to engage speakers they otherwise would not


It sends between distant cities via telephone lines, exact copies of

blueprints, layouts, and other visual materials- It is now used increasingly
to transmit copy between the offices of an agency and clients or between
an organisation and a communications medium.

Planning Process of PR

Public relations is not merely a process of getting stories and pictures into
newspapers. It is much more. It has to be properly planned, orderly executed, and a
number of details need careful attention. Public relations costs money, requires
manpower, needs expertise, and consumes time and resources. So it should be
well planned and executed in an orderly manner.

PR Objectives

The first step is to set out clearly the PR objectives before

any campaign is launched. The publicist must have a clear idea
as to what is intended to be achieved. His approach should be
positive and purposeful:

The next step is to decide who is the audience to be reached i.e. local,
regional, national, or international. And apart from geographical
area, it should be considered if any specialized audience or a
section of the community or professional people is also to be

After deciding the public the company has to decide what message they want
to pass through the campaign, what is it they want the people to know about them or
what they want to tell or inform the public about.

A strategy is a long term planning or the methods that a company adopts to
make itself a successful company. For a PR campaign also strategies are required to be
formed to so that they can create an impact or impression in the minds of the people;
as well as they can build a fair and favourable image in the market.

Along with a good strategy a company also needs to use some very good
tactics for it’s campaign because there are competitors in the market and the company
has to stand on top of all of them.

Time Scale
The public has to decide the time scale in which they will complete the
campaign. They have to set a specific time. Also the decision about the
commencement of campaign, duration, repetition, etc. is to be made well in time.

The publicist has also to think about the resources in terms
of money and staff available to him. The campaign has to be
planned keeping in view the resources which the publicist would
be able to mobilize.

Selection of Media/Resources
Another point that requires a decision is about the media to be
employed for the campaign: whether publicity is to be conduct-
ed with one medium or more than one or through multi-

After deciding upon the above things the publicist should evaluate the whole
process to check whether everything is properly being done or not or whether they
have to add anything else or not, etc.

After evaluation again there should be a review of the entire thing to give it a
final check.

After the campaign there should be an analysis of the entire process sp that
they will come to know whether the campaign was successful or not and if not then
where it went wrong. If any draw back’s are pointed out then again the whole process
is repeated from the point of identifying the public’s.


Profile Of LIC

Life Insurance Corporation Of India was formed on 1st September 1956. It

can be said that with the formation of LIC, utilisation of peoples money invested in
Life Insurance for planned economic development took roots. One of the
reasons/objective of Nationalisation of life insurance industry was channelising of its
funds for the benefit of the community at large.

"A trans-nationally competitive financial conglomerate of significance to societies
and Pride of India" -

"Explore and enhance the quality of life of people through financial security by
providing products and services of inspired attributes with competitive returns,
and by rendering resources for economic development.”

LIC operates all over India. It has :-

-7 Zonal offices
-100 Divisional offices
-2048 Branch offices
-6,28,301 Agents

Objectives Of LIC:
1. Spread of Life Insurance widely an in particular to the rural areas an to
the socially an economically backward classes with a view to reaching all
insurable persons in the country and providing them adequate financial cover
against death at reasonable cost.

2. Maximise mobilisation of people’s savings by making insurance-
linked savings adequately attractive.
3. Conduct business with utmost economy and with the full realisation
that the money’s belong to the policy holders.
4. Act as trustee’s of the insured public in their individual as well as
collective capacities.
5. Meet the various Life Insurance needs of the community that would
arise in the changing social and economics environment.
6. Involve all people working in the corporation to the best of their
capability in furthering the interest of the insured public by providing efficient
service with courtesy.
7. Bear in mind, in the investment of funds, the primary obligation to its
policy holders, whose money it holds in trust, without losing sight of the
interest of the community as a whole; the funds to be deployed to the best of
advantage of the investors as well as the community as a whole, keeping in
view the national priorities and obligations of attractive returns.
8. Promote amongst all employees and agents of the corporation, pride
and job satisfaction through discharge of their duties with dedication

Products Of LIC

Before any PR campaign is started or planned it is necessary to know the products of

that organisation.

LIC has a variety of insurance plans to choose from. These plans cater to all
categories of people and to their diverse needs. The plans are simply unmatched in
reliability, benefits and in providing happiness and security.




 Group Insurance Scheme:

Group term Insurance Scheme
Group insurance scheme in lieu of EDLI
Group gratuity scheme
Group super annuation scheme
Group savings linked insurance scheme
Group leave encashment scheme
Voluntary retirement scheme

 Social Security Scheme
Janshree Bima Yojana.
Swaranajyoti Gram Swarojgar Yojana.

Subsidary Companies Of LIC.

 LIC Mutual Fund And Jeevan Bima Sahayog Asset

Management Company Ltd.
The Lic mutual fund was set up in june 1989 as separate trust by LIC of India with
a view to providing accessibility of various investment media including the stock
markets to all sections of investors, particularly the small investors in rural and
semi-urban areas. For LIC Mutual Fund schemes, Jeevan Bima Sahayou Asset
Management Company Ltd (JBS AMC) incorporated on 20th April 1994, acts as
Investment Manager.

 LIC Housing Finance Limited.

Incorporated on 19th June 1989 under the Companies Act 1956—main objective
of the company is to providelong term finance for construction/ purchase of
individual houses/flats. The Company has 6 Regionaloffices & 67 operating
offices alongwith 100 Extension ?Counters & Camp offices, making it the housing
finance institution with the widest marketing network in the country andis
amongst the premier Housing Finance Companies in our country.

 Life Insurance Corporation (International) E.C.

The company was established in 1989 at Bahrain with the following broad
1. To cater for the insurance needs of expatriate Indians in theGulf by issuing
nsurance policies in US $.
2. To provide insurance services to the holders of Indian /Registered policies of
LIC of India currently residing in Gulf.
3. To help Non-Resident Indian to have their “Own Home Back Home” through
loans from LIC Housing Finance Limited.

Corporate Policy Of LIC On Public Relations

Public Relations aims at building-up and maintaining sound, effective and

productive relations with the public so as to help the organisation to understand and
interpret the environment as also help the public and the society at large to appreciate
the performance and limitations of the organisation. Public Relations has the
responsibility to build and maintain two-way relations between the Public and the
Organisation at all levels.

The Public in the case of LIC includes:

A. levels of employees and agents.

B. Customers.

C. Government: Central, State & Local bodies.

D. Media, Press, T.V., Radio & Agency-owners and correspondents and

E. Citizens at large.

A clearly laid down Public Relations Policy, therefore, is essential to set the
goals, indicate the strategies and give proper direction to all levels in the area of Public

Establish understanding and develop awareness of mutual aspirations of LIC
and the Public.

1. Promote within the Corporation greater awareness of the changing environment and
the need to align the corporate policy to the emerging situation.

2. Help fashioning, within the constraints, its policies, programmes, practices and
products to meet the expectations of the Public. Help the public to appreciate the
performance and the limitations of LIC.

3. Make PR occupy the front seat in the organizational set-up.

1. Develop excellent relations with the totality of the media-print, electronic and
agency owners and reporters by regular exchange of information with them.

2. Establish relations-and develop understanding with the Govt. - Central, State &
Local bodies through legislators and Govt. officials.

3. Develop full understanding with the workers-employees at all levels and agents on
organizational goals, policies, practices and programmes.

4. Develop an effective system of communication with the departments and operating

units on the environment and on implementation of policies.

5. Build an atmosphere of goodwill and understanding inside and outside the

organization leading .to better appreciation of the Corporation's policies and

6. Help to evolve an effective machinery for quick and satisfactory redressal of grie-
vances of the public.

7. Help to develop an image of LIC as a responsive organization,

8. Devise methods for opening up channels of two-way communication with various
publics of the Corporation.

Action Plan

1. Keeping the objectives, philosophy and the strategies in view, drawing-up annual
PR plans by Branches, Divisions, Zones & Corporate Office.

2. Develop an effective system of periodical reviews of PR Plans at all levels - B.O.,

D.O., Z.O. and Corporate.

3. Develop streamlined methods of systematic dissemination of the information re-

levant to each of the publics.

4. Develop streamlined methods of receiving messages/feedbacks from the totality of

the publics.

5. Formation of PR Advisory Committees at D.O., Z.O. and C.O. Organize PR depart-

ments in the C.O., Z.O.s and D.O.s for realization of the goals, and develop a nucleus
in Branches also.

6. Organize events like inauguration of new B.O., D.O., Z.O. or any arm of the
Corporation (diversification) etc. as public functions to project corporate image.

7. Actively participate in at least one important scheme in each of the States and in
two or three national level schemes to help improve the quality of social life and
establish the social relevance of LIC.

8. Develop a task-plan in respect of the above strategies.


Publicity is a method of mass communication used for product launch product

promotion, communicating pricing mix, consumer education, countering competition
etc. LIC's publicity should be impressive, attractive and in conformity with the
national advertising policy.

Publicity should be cost-efficient and of high quality and should bring about
money's worth through a system of integrated communication.


1. Promote the Corporation's products, the whole line of products, including the
pricing mix.

2. Educate the customers to facilitate more efficient service and appreciation of Cor-
poration's limitations.

3. Meet the challenges of competition.

4. Promote the Organization, enhance the Corporate Image.

5. Make publicity occupy the front seat in the organizational set-up.


1. Organizing Publicity Department in the C.O., Z.O. and D.O., for realisation of the
goals. Develop a nucleus in Branches also.

2. Developing a system of co-ordinating the publicity programmes with marketing

3. Developing a system of co-ordinating the publicity programmes with the emerging

4. Developing streamlined methods of receiving feedback to assess the effectiveness
of publicity campaigns.

Action Plan

1. Keeping the objectives, philosophy and the strategies in view, drawing-up annual
PR plans by Branches, Divisions, Zones & Corporate Office.

2. Develop an effective system of periodical reviews of PR Plans at all levels - B.O.,

D.O., Z.O. and Corporate.

3. Develop streamlined methods of systematic dissemination of the information re-

levant to each of the publics.

4. Develop streamlined methods of receiving messages/feedbacks from the totality of

the publics.

5. Formation of PR Advisory Committees at D.O., Z.O. and C.O. Organize PR depart-

ments in the C.O., Z.O.s and D.O.s for realization of the goals, and develop a nucleus
in Branches also.

6. Organize events like inauguration of new B.O., D.O., Z.O. or any arm of the
Corporation (diversification) etc. as public functions to project corporate image.

7. Actively participate in at least one important scheme in each of the States and in
two or three national level schemes to help improve the quality of social life and
establish the social relevance of LIC.

8. Develop a task-plan in respect of the above strategies.

Now let us see the PR activities at LIC

Public Relations Activities At L.I.C.

Press conference & interview are arranged periodically by
all L.I.C. offices - ie , Central, Zonal, Divisional and Branch offices at the
time of launching any new scheme and to inform about the policies ,
programmes and activities to the press so that it can be publicised.


LIC has its own web site which provides information
about LIC and its subsidiaries and the products offered by them .


With a view to providing quick and accurate service its
customers LIC has introduced on-line service through front - end
terminals in 1993 branches and soon all our customers will be able to
benefit by this .


LIC has established an elaborate Grievance Redressal

Machinery in order to deal with problems of customers . The grievance
redressal cells are operative at all levels ie. Branch, Divisional, Zonal and
Corporate offices . Specially designated officers attend to policyholder's

LIC has organised a massive rally to pay homage martyrs of Kargil to provide
moral support to the Indian army.

PR And Publicity Conferences

PR And Publicity Conferences arranged at the central office in which the
Chairman emphasised the need to reposition the organisation the organisation in the
emerging cooperative scenario with the help of revised PR and publicity strategies
because it was found out by a survey that the level of customer satisfaction is not very

Claim review committees

A claims review committee was being formed at the corporate level with a
retired Judge as one of the members and it handles grievancs arising out of reudiation
of claims etc. Similar committees are also constituted at Zonal level.

Press Releases
Press releases regarding important news are released from time to time so that
people are kept informed and they know about them.

Customer Meets
Periodical customer meets are organised at Divisional and Branch level to
facilitate greater interaction with policyholders.

Publicity Pavilion
Publicity Pavilion are arranged to display information about PR and Publicity
activities of LIC.

Consumers Affair Committee

A high profile committee has been constituted by the Central office with
eminent persons from the consumers movement being its member to advice and guide
LIC on maters concerning consumer interests.

LIC arranges its various schemes and exhibitions so that it can display its
various schemes and plans .

Citizens Charter
The corporation has adopted a Citizens Charter wherein commitments have
been made to its customers for higher standards in servicing.

Seminars are also arranged by LIC so that they can display their policies and
plans .

Free Phone Call Facility To The Policy Holders

A unique facility of free phone call service is being provided to the policy
holders of Mumbai city to enable them to have easy access to grievance redressal
officers over the phone.

LIC sponsors man y events like chess tournaments table tennis tournaments for
the employees and also for the general public. It has also sponsored a health camp
organised by ‘Masoom’ – an organisation of understanding and fraternity.

Distribution Of Dairies And Calendars

LIC distributes dairies and calendars to its employees and also to the general
public every year.

Publicity Stalls
Publicity stalls are been put up by LIC at different fairs and melas to publicise
the corporation and its schemes and plans.

Public Functions
Inauguration of new offices helps in communication as well as in enhancing
the image of the corporation.

Advertisement In Newspaper And Magazine

Advertisement about LIC’s products, activities and policies is published in
newspapers and magazines.

House Magazine –Yogkshema

Yogkshema is the house magazine of LIC. It provides information about the
corporation , its activities , policies an programs.

Advertisement At Railway Station and Airport

Posters and banners are set up at strategically important public places such as
Airports ,Railway stations ,Bus terminals ,shopping counters an at the reception
counters of the business premises. This enables the policy holders to access
information about LIC & its products etc.

Insurance Week
An insurance week was arranged by LIC through which people were exposed
to various insurance schemes of LIC.

Advertisement On Radio satellite channel

Advertisement about LIC are frequently been telecast on radio and satellite

Advertisement At Kumbh Mela

LIC has also advertised about its products and the corporation even in Kumbh

Training Programmes
Training programmes are arranged by LIC for its employees so that they can
be trained for the purpose of public relation activities.

Meetings of Development officers are arranged by LIC to train their employees
for public relation activities.

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notes, project reports etc.


Public Relation came into existence by the belief that if we do something good for
people then only the people Will say good about the organisation. Today's is a age of
competition. And to remain firm in the competition depends on how efficiently the
Organisation manage its PR & project the company's image .

Public Relation will not sell goods and Services but it is bound to create an
atmosphere which will make the free enterprise , a reponsible enterprise . Public
Relations , in fact Will prove to be the most effective tool for communicating with the
People who are still remote from industry for convincing them that
Corporate objectives are ultimately in the interest of the public .

The PR Mantra has now became pervasive. Neither a individual nor the
organisation & not even the government Or a UN body can thrive or sustain in this age
without effectively strategising PR.

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notes, project reports etc.

• Principles of Public Relations.
- C.S. Rayudu.
- K.R. Balan.

• Hand Book of PR in India.

- D.S. Mehta.

• The Art And Science of Public Relations.

- Anne Gregory.


• Find

• Visit for

more notes, project reports etc.