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.

Public Relations as a term was first formally used by µThomas Jefferson¶ in the year 1807, while drafting his seventh address to the congress delegates when he scratched out the words ³State Of Thought´ and wrote ³Public Relations´ instead. Informally Sir Walter Raleigh used it even earlier during the Land Rehabilitation 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 groups 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 companies 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 mean 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 : µThe discipline which brings out the rewards in generating ³mutual 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 organization or an individual with pubic interests & plans & executes a program or action to earn public understanding and acceptance.

Interpretation of the above definition1. It measures, evaluates & interprets the attitude of various related public. 2. It assists management in defining objectives for increasing public understanding & acceptance of organizations products, plans, policies & personnel 3. It equates these objectives with the interests, needs & goals of various related public. 4. It develops, executes & evaluates a program to earn public understanding & acceptance.

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 analyze 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 pursuing 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 behavior like selling goods or inspiring innovative ideas.

OBJECTIVES OF PUBLIC RELATIONS: The main objective of public relations is to establish good understanding 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 organization. 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 behavior 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 organization like price, quality, export, employment, and other special features. 19. To ascertain public opinion, conduct opinion research, and understand public attitudes on the organization, profession and practice. 20. To sponsor dealer and distributor relations schemes. 21. To undertake programmes like sales training courses for retailers, wholesalers.

22. To establish press relations, publicity articles preparation, press release, photographs. 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 organization 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 organization. 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 popularize 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 interferes, 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 include:

(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 neighbor' activities, including compliance with environmental protection standards, fostering equal employment opportunity, 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.

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 contributionsVarious 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.

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. In carrying out the plan, he must keep in mind the fact that public relations are 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.

5. As a consequence of all 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 mobilize 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 response 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 favorable 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 personalized 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.

(f) 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 summarizing 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 government. 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 Relation A communication network should not overlook the importance of dealer communication. The dealer is a trader who carries on the business me of buying and selling and other dealings. A dealer affects 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-organization Relations No business organization 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, intercorporate 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 intraindustry 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 organization¶s march, social responsibilities discharged and getting their employees informed about the movement of employees in comparable organisations.

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 favor done to the company.

Correspondence with the company is a good means of communication; in particular, face-toface 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:


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 people.

3. Integrity, in the sense of mental honesty.

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

5. A balanced temperament particularly the absence of such traits as emotional instability, a sense of marked inferiority, forcefulness and self-centered 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 µconstitution.¶ 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 µInformation Society¶ and µNew 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 ³we 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 skeptic 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 consequences. 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 µActivity 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¶ function towards the public and to control communicative reaction.


Advertising is publicity but not all publicity is adverti sing. 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 modernization and cuts across Ideologies.

Any advertising campaign should contain in it the broad ingredient 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 causes. 

Publicity is the technique of 'telling the story' of any organization 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, and 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 publicity and advertising, 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 favor 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 international relations by negotiation', or, 'the method by which these relations are adjusted and managed.'

Diplomacy is the application of intelligence and tact to the conduct of official relations between the governments of independent states. 

Promotion describes commercialization of publicity, and publicity and advertising jointly, usually on a grand and co-ordinate 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 focused 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 essence, 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, labor, 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, and conditions for application.

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 structure.

They are sent out with every kind of enclosure; pamphlets and leaflets, order blanks, samples, pictures, return post cards, and many others. 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 (his 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 for 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 telephones 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, rumor 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 wordof-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. Capitalizing on a mass trend or catchword. 

Newsletter :
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 nonprofit 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 reading. 

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

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 attract. 

Facsimile :
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 organization and a communications medium. 

Planning Process of PR :
Public relations are 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:

Publics -

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 reached.

Message -

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.

Strategy -

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 favorable image in the market.

Tactics -

Along with a good strategy a company also needs to use some very good tactics for its 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.


Resources -

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 conducted with one medium or more than one or through multimedia. 

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 backs are pointed out then again the whole process is repeated from the point of identifying the publics.


Profile Of LIC
Life Insurance Corporation of India was formed on 1st September 1956. It can be said that with the formation of LIC, utilization of peoples money invested in Life Insurance for planned economic development took roots. One of the reasons/objective of Nationalization of life insurance industry was channelizing of its funds for the benefit of the community at large. 

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

MISSION "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:
o 7 Zonal offices o 100 Divisional offices o 2048 Branch offices

o 6,28,301 Agents

Objectives of LIC:

1. Spread of Life Insurance widely an in particular to the rural areas a 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. Maximize mobilization of people¶s savings by making insurance-linked savings adequately attractive.

3. Conduct business with utmost economy and with the full realization 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 economic 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.
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Group Insurance Scheme:
o o o o o o o

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 

Subsidiary 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 1956²main objective of the company is to provide long term finance for construction/ purchase of individual houses/flats. The Company has 6 Regional offices & 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 objectives: 1. To cater for the insurance needs of expatriate Indians in the Gulf by issuing insurance 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 ³Own 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 have 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 Relations.

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 eading .to better appreciation of the Corporation's policies and performance.

6. Help to evolve effective machinery for quick and satisfactory redressal of grievances 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, and 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 relevant to each of the publics. 4. Develop streamlined methods of receiving messages/feedbacks from the totality of the public¶s.

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

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

Goals : 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 CorPoration¶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. 

Strategy : 1. Organizing Publicity Department in the C.O., Z.O. and D.O., for realization of the goals. Develop a nucleus in Branches also. 2. Developing a system of co-coordinating the publicity programmers with marketing agencies.

3. Developing a system of co-coordinating the publicity programmes with the emerging competition. 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, and 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 relevant to each of the publics.

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

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

Public Relations Activities at L.I.C. 
PRESS CONFERENCE : Press conference & interview are arranged periodically by all L.I.C. offices - i.e. , 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 publicized. 

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

USAGE OF INFORMATION TECHNOLOGY : 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. 

GREIVANCE REDRESSAL MACHINERY : 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 i.e. Branch, Divisional, Zonal and Corporate offices. Specially designated officers attend to policyholder's complaints. 

RALLY ORGANISATION : LIC has organized 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 emphasized 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 high. 

CLAIM REVIEW COMMITTES: A claims review committee was being formed at the corporate level with a retired Judge as one of the members and it handles grievances 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 NEEDS : Periodical customer meets are organized 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 consumer¶s movement being its member to advice and guide LIC on maters concerning consumer interests. 

EXHIBITIONS : 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 : 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. 

SPONSORSHIP : 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 organized by µMasoom¶ ± an organization 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 publicize 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 and 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 channel. 

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

Public Relation came into existence by the belief that if we do something good for people then only the people will say well about the organisation. Today's is an age of competition. And to remain firm in the competition depends on how efficiently the Organisation manages its PR & projects 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 responsible 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 become pervasive. Neither an individual nor the organisation & not even the government or a UN body can thrive or sustain in this age without effectively strategizing PR. 


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. 

Web Sites :
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