A PROJECT ON: PUBLIC RELATIONS OF LIFE INSURANCE CORPORATION OF INDIA SUBMITTED BY: ------- T.Y.B.M.S. (SEMESTER V) Name of college FOR ACADEMIC YEAR: ----- SUBMITTED TO: UNIVERSITY DECLARATION I, name , OF name of college OF T.Y.B.M.S. (SEMESTER V), HEREBY DECLARE THAT, I HAVE COMPLETED MY PROJECT ON “PUBLIC RELATIONS OF LIFE INSURANCE CORPORATION OF INDIA” IN THE ACADEMIC YEAR 2007 – 2008 THE INFORMATION SUBMITTED HEREIN IS TRUE AND ORIGINAL TO BEST OF MY KNOWLEDGE. ———————— ———————— DATE OF SUBMISSION SIGNATURE OF 1
Transcript
A PROJECT ON:PUBLIC RELATIONS OF
LIFE INSURANCE CORPORATION OF INDIA
SUBMITTED BY:-------
T.Y.B.M.S. (SEMESTER V)
Name of college
FOR ACADEMIC YEAR:-----
SUBMITTED TO:UNIVERSITY
DECLARATION
I, name, OF name of collegeOF T.Y.B.M.S. (SEMESTER V),
HEREBY DECLARE THAT,I HAVE COMPLETED MY PROJECT ON
“PUBLIC RELATIONS OF LIFE INSURANCE CORPORATION OF INDIA”
IN THE ACADEMIC YEAR 2007 – 2008THE INFORMATION SUBMITTED HEREIN IS
TRUE AND ORIGINAL TO BEST OF MY KNOWLEDGE.
———————— ————————DATE OF SUBMISSION SIGNATURE OF STUDENT (name)
—————— PLACE
1
CERTIFICATE
I, PROF.name, HEREBY CERTIFY THAT name of student OF name of college
FROM T.Y.B.M.S. (SEMESTER V) HAS COMPLETED HIS PROJECT ON
“PUBLIC RELATIONS OF LIFE INSURANCE CORPORATION OF INDIA”IN THE
THE INFORMATION SUBMITTED HEREIN IS TRUE AND ORIGINAL TO THE BEST OF MY KNOWLEDGE.
—————————— ——————— SIGNATURE OF PROJECT SIGNATURE OF GUIDE CO-CORDINATOR
———————————— —————————SIGNATURE OF COLLEGE SIGNATURE OF PRINCIPAL EXTERNAL EXAMINER
2
ACKNOWLEDGEMENT
One of the pleasant aspects of preparing a project is the opportunity to thank
those who have contributed to make the project completion possible.
I extremely thankful to Prof ?? whose active interest in the project insights
helped us to formulate, redefine and implement our approach towards the
project.
I am also thankful to all those seen and unseen hands & heads, which have
been of direct or indirect, help in the completion of this project.
3
CONTENTS
Sr.no TopicsPage
No
1 INTRODUCTION 7
2 HISTORY OF PUBLIC RELATIONS 10
3 OBJECTIVES OF PUBLIC RELATIONS 12
4 FUNCTIONS OF PUBLIC RELATIONS DEPARTMENT 15
5 THE NEED FOR PUBLIC RELATIONS 19
6 SCOPE OF PUBLIC RELATIONS 22
7PROFESSIONAL CODE-PUBLIC RELATIONS
CODE OF ETHICS23
8 PUBLIC RELATIONS IN INDIAN ECONOMIC 27
9 MEDIUMS OF PUBLIC RELATIONS 29
10 PLANNING PROCESS OF PUBLIC RELATIONS 35
11
CORPORATE PROFILE
39
12 PUBLICS IMPORTANT TO LIC 43
13 RELATIONSHIP WITH SIGNIFICANT PUBLICS 44
14 CONSUMER RELATIONS IN LIC 46
15 FINANCIAL RELATIONS IN LIC 52
4
16 COMMUNITY REALTIONS IN LIC 52
17 AIM OF CORPORATE RELATIONS FULFILLED AT LIC 53
18 CORPORATE POLICY OF LIC ON PUBLIC RELATIONS 55
19 PUBLIC RELATIONS ACTIVITIES OF L.I.C 58
20 CONCLUSION 63
21 BIBLIOGRAPHY 64
5
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.
Relations:-
It is the outcome of mutual understanding derived from the process of
sharing of common interest where as relationship is the definite type of
relation or interaction taking place between two individuals, group or
6
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:-
Corporate PR dept: - In a corporate department, specialists handle
corporate PR activities for only that company.
PR Agencies: - In agencies specialists carry out PR activities for several
companies
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:
7
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 organization or an
individual with pubic interests & plans & executes a program or action to
earn public understanding and acceptance.
Interpretation of the above definition-
It measures, evaluates & interprets the attitude of various related public.
It assists management in defining objectives for increasing public
understanding & acceptance of organizations products, plans, policies &
personnel
It equates these objectives with the interests, needs & goals of various
related public.
It develops, executes & evaluates a program to earn public understanding &
acceptance.
8
HISTORY OF PUBLIC RELATION:-
Public Relations as a term was first formally used by ‘Thomas Jefferson’ in
the year 1807, while drafting his seventh address to the congress delegates
when he scratched out the words “State Of Thought” and wrote “Public
Relations” instead. Informally Sir Walter Raleigh used it even earlier during
the Land 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
9
course gained importance later through the Public Relations Society of India
(PRSI) in 1958.
Elements of Public Relations:
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.
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.
Persuasion:
There are 2 forms of interaction between individuals or groups
Force or compulsion b) persuasion.
If one party compels another to do something instead of perusing him this is
called Despotism. 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.
Dialogue:
10
It is a conversation with purpose. It is not a bargain basement transaction
but it is a low form of negotiation. Dialogue is a reasonable exchange of
ideas bringing into view a new form of knowledge, the use of dialogue is for
influencing behaviour like selling goods or inspiring innovative ideas.
OBJECTIVES OF PUBLIC RELATIONS
11
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 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.
12
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
13
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.
14
FUNCTIONS OF PUBLIC RELATIONS DEPARTMENT
The functions to be performed by a public relations department may vary
from organization to organization depending upon the nature and activities
of a particular organization. However, certain standard functions have
emerged as common in most balanced departments. They are discussed
below:
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 the other sections and divisions.
15
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 communication media. It has to handle
inquiries from the press. It is a part of the functions of the department to
develop and place promotional and publicity about the company as a whole
or any of its units.
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 communication media. The
department has to develop and execute the promotional product publicity
campaigns.
Relations with the Government:
Relations with the 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:
Advise action as needed
Report trends in government affecting the company
16
Help in preparing and directing corporate appearances before
investigating bodies of legislative hearings.
Direct programmes designed to promote the company’s point of view
in legislative or regulatory matters.
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
opportunity, cooperating in urban improvement programmes, and
developing community understanding of a company’s problems and needs.
Shareholders relations:
Relations with the corporate stock- holders are more important to attract
public money. This takes the form of communication between the company
and the shareholders in particular and also the investment community in
general. It is necessary for the development and acceptance of the company
among the investors by broadening the exposure of the company’s policy
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 analysis.
Promotion Programmes:
17
Public relations promotion programmes should be formulated and
implemented. This may broadly cover institutional advertising, public
relations literature and special events.
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
employee’s solicitations for approved drives.
Employee Publications:
The public relations department has to prepare and publish employee
magazines, newspapers, bulletins, management communication etc
Guest relations:
The department must undertake guest reception activities.
Coordinating activities.
Conveying and Interpretation.
Advisory function.
Public relations education programme.
ESTABLISHMENT OF RELATIONS WITH THE PUBLIC
As experience has shown, the world stands divided into three sets of people:
1. There are those who know you and like you.
18
2. There are those who know you and do not like you, and
3. There are those who neither know you nor care.
The third are usually the large majority. Now the aim is:
1. To reach a position where those who know and like you stay
that way;
2. Where those -.who know you and do not like you, change
their opinion;
3. Those who neither know you nor care wish they could meet
you and do business with you.
The technique involved in the process is like that of the one followed by the
fisherman who chooses his bait not by his own taste but by the taste of the
fish.
19
THE NEED FOR PUBLIC RELATIONS
In recent decades human society has become so complicated and
differentiated that the individual--- at least in the developed countries- is no
longer able to live without adequate information. He certainly would not be
able to live well without using the numerous possibilities of information
offered him today. It is an indisputable fact that in this increasingly
automated world man can no longer exist in complete isolation. In our age,
technical developments have intensified the interdependence of all people to
such an extent that the individual's capability of living is dependent, in many
different ways, on society. That is, the individual lives on information he
receives from society.
Four Fundamental Factors:
The answer to the question, 'Why Public Relations?' is well explained with
the help of the following paragraphs:
1. Communication:
The means of 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
20
'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 academics 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 realization that
ignorance, the inability to appreciate or recognize, 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
21
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 in direct connections with the public, to fulfill a kind of
interpreter's function towards the public and to control communicative
reaction. The desired effect can only be achieved if the information or
message is true and verifiable, clearly formulated and readily
understandable, and is also in conformity with the daily practice of living
and experiencing.
22
SCOPE OF PUBLIC RELATIONS
There has been misconceived opinion about the scope or field of public
relations activities. In lectures and articles published one is apt to gain the
impression that public relations concern industry and commerce only. In
such an instance it can only be said that one tends to overlook the fact that
public relations, particularly in this decade, has entered all sectors of public
23
life, not excluding religion, and that it how has a virtually unlimited field of
application. The following examples demonstrate the wide field of public
relations activities in industry and commerce. In our market economy there
are information gaps which cannot be filled by the interaction of supply and
demand via prices, costs or wages. This is when public relations activity
steps in. It provides information on Planning technical and organizational
developments, inventions and their potential utilization, or it issues at
regular intervals company reports which provide a deeper insight into the
structure of the corporation than the public can otherwise obtain. The
relations activity is becoming increasingly necessary for the procurement of
economically essential production factors. It makes it easier for corporations
to tap the money-market or to finance their projects by issuing bonds or
shares. It can also help them to find new personnel when necessary, and thus
level out personnel fluctuation without reducing the desired working
mobility. Finally it is easier for a corporation to acquire land from a
community if the corporation cultivates public relations and endeavors to
bring its own interests in harmony with those of the community.
Public relations activity may support marketing. In its various forms it may
contribute decisively to successful frictionless business activity. The
principles of reciprocity underlying public relations is for the corporation an
incentive to improve performance, because it helps the Corporation to
overcome a difficult situation. Today the public relations profession has
entered even in to the fields of hospitality, tourism, institutes, in education
and to a variety of others.
24
PROFESSIONAL CODE-PUBLIC RELATIONS
CODE OF ETHICS
International Code of Ethics for Public Relations as adopted by the Public
Relations Society of India at the 1st All India Public Relations Conference,
New Delhi, April 21, 1968: Considering that all member-countries of the
United Nations Organization have agreed to abide by its Charter which
refines "its faith in fundamental human rights, in the dignity and worth of the
human person" and that having regard to the very nature of their profession,
Public Relations practitioners in these countries should undertake to
ascertain and observe the principles set out in this Chapter. Considering that,
apart from "right", human beings have not only physical or material needs
but also intellectual, moral and social needs, and that their rights are of real
benefits to them only in so far as needs are essentially met.
Considering that, in the course of their professional duties and depending on
how these duties are pardoned, Public Relations practitioners can
substantially help to meet these intellectual, moral and social needs. And
lastly, considering tell the use of techniques enabling them to come
simultaneously into contact with millions of people gives Public Relations
practitioners a power that has to be restrained by the observance of a strict
moral code. On all these grounds the Public Relations Society of India
hereby declares that it accepts, as its moral charter the principles of the
following Code of Ethics, and that if, in the light of evidence submitted to
the Society, a member of this Society should be found to have infringed this
Code in the course of his professional duties, he will be deemed to be guilty
of serious misconduct calling for an appropriate penalty.
25
Accordingly, each Member of this Society Shall Endeavor
1. To contribute to the achievement of the moral and cultural conditions
enabling human beings to reach their full stature and enjoy the
indefeasible rights to which they are entitled under the "Universal
Declaration of Human Rights".
2. To establish communication patterns and channels which, by fostering the
free flow of essential information, will make ach member of ' the group
feel that he is being kept
informed, and also give him an awareness of his own personal
involvement and responsibility and of his solidarity with other members;
3. To conduct himself always and in all circumstances in such a manner as
to deserve and secure the confidence of those with whom he come into
contact;
4. To bear in mind that because of the relationship between his profession
and the public, his conduct even in private will have an impact on the way
which the profession as a whole is appraised.
5. To observe, in the course of his professional duties, the moral principles
and rules of the "Universal Declaration of Human Rights";
6. To pay due regard to, and uphold, human dignity, and to recognize the
right of each individual to judge for himself;
26
7. To establish the moral, psychological and intellectual conditions for
dialogue in its true sense, and to roguish the right of the parties
involved to start their case and express their views;
8. To act in all circumstances in such a manner as to takeaccount of the
respective interests of the parties involved; both the interests of the
organization which he serves and the interests of the publics concerned;
9. To carry out his undertakings and commitments which shall always be so
worded as to avoid any misunderstanding and to show loyalty and
integrity in all circumstances so as to keep the confidence of his clients or
employees, past or
present and of all the publics that are affected by his action. shall refrain
from;
10. Subordinating the truth to other requirements;
11. Circulating information which is not based on established and
ascertainable facts;
12. Taking part in any venture or undertaking which is unethical or dishonest
or 'capable of impairing human dignity and integrity;
13. Using any 'manipulative' methods or techniques designed tocreate
subconscious motivations which the individual cannot control of his own
free will and so cannot be held accountable for the action taken on them.
27
Personal Credo of Bateman
(General Chairman of the Public Relations World Congress)
August 11 to 14, 1976.
1. I believe that public relations are a profession which should concern itself
not with the manipulation of the people, but with their continuing
enlighten.
2. I believe that public relations practice should strive to elevate its
audiences rather than to degrade them, and our communications should be
addressed to reason judgment rather than to emotion and prejudice.
3. I believe that sound public relations comprises policies and deeds as well
as words; that it must deal in truth rather than in Celestin; that it must
seek to clarify the issues of our times rather than confuse them
4. While I may understand to present one point of view for public
consideration, I believe in the inalienable right of those with opposing
points of view to present their cases the also. For Ire cognize my right to
speak can be assured only if guarantee exists for all, including those whose
causes are unpopular.
5. I believe that the democratic process must prevail in the market place of
ideas, as well as the political and economic affairs.
28
6. I believe that the public interest takes precedence over the interests of
those I represent; and I conceive my function as being to assist in
confirming the interests of those I represent
7. I recognize that the consequences of my actions are affected in the minds
of men; and because the human mind has immeasurable potentials for
good and for evil, I must approach my task in reverence and as for the
inviolable right of the individual to make his own judgments.
29
Public Relations in Indian Economic
The Houses of Tata, Mafatlal, Bajaj, Hindustan lever, Colgate Palmolive,
Indian Oxygen, Goodyear, Hoechst, DCM, Godrej, TVS, ACC, Mahindra &
Mahindra, Birlas and the JK Group of Kanpur, to name a few, have
contributed a great deal to the economic development of India by faithful
implementation of corporate relations programmes. Owing mainly to tile
progressive and enlightened programmes and policies of these 'corporate
citizens’, abundant employment opportunities have been generated, and
sizeable foreign exchange has also been earned. The following are .the
elements involved in the Corporate (Public) Relations Policy which have
helped these companies gain the esteem of the various segments of the
Indian and overseas public.
1. Adoption to counseling based on an understanding of human behavior.
2. Analyzing future needs and predicting their consequences.
3. Research into public opinion, attitudes and expectations and advising on
necessary action.
4.Establishing and maintaining two-way communication basedon truth and
full information.
5. Preventing conflict and misunderstandings.
6. Promoting mutual respect and social responsibility.
30
7. Harmonizing the private and public interests.
8. Promoting goodwill with staff, suppliers and customers.
9. Improving industrial relations.
10. Attracting good personnel and reducing labor turnover.
11. Promotion of products and service.
12. Maximizing profitability.
13. Projecting a 'Corporate Identity.'
14. Encouraging an interest in international affairs.
15. Promoting an understanding of democracy.
31
Mediums of Public Relations
Letters
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
32
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
33
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
34
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 activating 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 non-profit fields as well. Associations
35
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 programmers as it goes, and reaching a
36
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.
Video Cassette, Audio Cassette and Disc Recordings
37
These are useful in overcoming some of the difficulties of working with a
diffuse and loose-knit organization. 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.
Electro writers
An executive or a demonstrator can write his 'blackboard' notes
across a long distance 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
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
38
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
39
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.
40
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
41
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 multi-media.
Evaluation
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.
Review
After evaluation again there should be a review of the entire thing to give it a
final check.
Analysis
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.
42
43
PEOPLE’S MONEY FOR PEOPLE’S WELRARE
LIC CORPORATE PROFILE
44
Life Insurance Corporation of India is a wholly owned undertaking of the
Government of India.
Life Insurance Corporation of India was established by an Act of
Parliament on 1st September, 1956. Its Central Office is located in
Mumbai. It also has seven zonal offices each located in Mumbai(Western
Zone), New Delhi (Northern Zone), Kanpur (North-Central Zone),
Bhopal (Central Zone), Chennai (Southern Zone), Hyderabad(South-
Central Zone), and Calcutta(Eastern Zone).
It has a network of over 2000(2048) branches and more than nine lakh
agents. Over 47 years, LIC has become a household name for providing
security for a lifetime and is synonymous to life insurance in India.
LIC ranks No.1 in the list of top 500 companies on the basis of Net
Worth(Rs. 15, 47, 951 million) as well as Net Profit(2,66,277 million)-
Dun & Bradstreet (India 500
OBJECTIVES OF PUBLIC RELATIONS IN LIC
45
The objectives of undertaking PR activities in LIC are manifold. In their
Citizen’s Charter the company states that:
TO THE COMMUNITY : We will
Conduct all aspects of our business keeping in view the interests of the
community and the national priorities; Provide insurance cover and financial
security to every insurable segment including the socially and economically
weaker sections of the society.
TO OUR CUSTOMERS: We will
provide them prompt, efficient and courteous service; act as trustees of their
funds and invest them to their best advantage; build and maintain enduring
relationship;
keep them informed about our products and services etc.
TO OUR WORKFORCE: We will
promote a sense of participation and make them partners in progress; work
towards ensuring their job satisfaction and sense of pride; provide an
environment and the opportunities for growth to enable them to realize their
46
full potential; take steps to develop professional skills to enable them to
handle their assignments more efficiently.
Organization and Staffing of the Public Relations Department
LIC is purely a service-oriented organization. Moreover for transacting with
their customers and business associates the company needs to develop and
maintain cordial relations with various sections of the society and various
other agencies i.e. their publics. This makes the role of PR in LIC even more
important and vital.
The company has a huge and active Public Relations Department which
looks after the publicity of the various services offered, maintaining cordial
relations with the various publics, publishing of journals, etc. and other PR
activities.
Budget:
The management allocates Rs. 2-3 crores (approx.) annually to the PR
Department. This amount is then further allocated to the various Zonal
Offices which prepare their individual budgets according to their
requirements.
47
Staffing Of PR Department
The Director-PR operates from the central office and has under him a Chief
PRO. Each Zonal Office has a Zonal Manager-PR under whom is the
Regional Manager-PR. Further under him is the Assistant Secretary who
works with his Subordinate staff to fulfill the day-to-day activities of the PR
Department.
A PR plan is made at the beginning of each accounting year for which
the Chairman appoints a PR Planning Committee. This committee
comprises of the Director PR, Chief PRO, etc.
Tasks and Activities under the purview of PR at LIC
Of the various activities undertaken by ‘Life Insurance Corporation’ some
are listed below:
Advertising
Though countywide advertising is done by the marketing department,
advertising locally in the various cities is handled by Zonal Offices. The
advertising strategy is very well planned and is largely aimed at image
building.
48
Organize press conferences
Press conferences are organized occasionally, generally when a new policy
is released or when the annual financial results are announced or if
something of significance has happened.
Issue Press Releases
Press Releases are issued both by the central office as well as the various
zonal offices.
Participate in public awareness programmes
LIC has time and again joined itself with various community development
and awareness programmes for the cause of rural development and
infrastructure development.
Publics Important to LIC
INTERNAL PUBLICS
Employees
Employee’s families
Staff Unions
49
EXTERNAL PUBLICS
Customers i.e. policy holders
Prospective Customers
Government Agencies
Banks and Financial Institutions
Statutory Bodies e.g. IRDA (Insurance Regulatory and Development
Authority)
Social Organizations
Lawyers
Local Administration
Media
General Public
Auditors
50
RELATIONSHIP WITH SIGNIFICANT PUBLICS
Significant internal publics of the organization are its
Employees
Employees’ families; and the
Staff unions.
EMPLOYEE RELATIONS
In most Indian organizations, or companies, communications with
employees have so far been given a back seat as compared to external
communications. This has not been the case with LIC. It has through time
realized the importance of its internal publics.
LIC shares a good rapport with its employees. There are various staff unions
to take care of the employees rights. The company shares a cordial and
harmonious relationship with these unions.
The company’s focus, as regards its employees, is on providing:
A healthy working environment;
Employee friendly HRD policy;
Job security;
Training of Human resources;
Fully utilizing its people’s talents and capabilities to promote skills and
competencies and broaden their perspective;
51
Handsome remuneration and perks.
The company achieves the above objectives by a number of means.
I. HOUSE JOURNALS
The corporation has a corporate house magazine ‘YOGAKSHEMA’ which
chronicles corporate and organizational events and pronouncements.
The corporation also releases a quarterly newsletter ‘JANKALYAN’ which
serves the above mentioned purpose as well as acknowledging employee
achievements and produce merit lists of employee performance.
A news letter NILYAMDOT COM is also published by the corporation
which is developed by the children of the LIC employees and is exclusively
for children.
II. INTERACTION
The corporation also conducts open houses, meetings, seminars, workshops.
This is done with the aim of facilitating two-way communication.
III. REWARDS
52
Prizes are awarded to top performers at staff meetings and conferences.
Rewards are given in the from of holiday, a family trip or some monetary
gain.
CONSUMER RELATIONS IN LIC
In consonance with the changes taking place in the insurance market, the
corporation has undergone a transformation, simultaneously requiring a
revamp in its image. Systematic and focused PR initiatives and widespread
publicity have resulted in markedly improved visibility. The corporation has
emerged with a much younger and sleeker image.
A conscious effort was made to bring about a transformation in the corporate
image. Through various campaigns, the corporation tried to depict the
organization as one oriented towards the younger generation.
The corporation advertising campaigns assisted the marketing strategies.
PR Activities for Consumer Relations
53
The business of insurance is purely service which cannot be seen or held.
Hence, the consumer relations activities of LIC concentrate on the customer
public and building relations with prospective customer.
The corporation has time and again made endeavors to reach out to the
consumers, interact with them and keep them satisfied.
The corporation tries to achieve its objective through a number of means
Oral Communication
Oral communication with the consumer public is the most effective means
of presenting facts and creating understanding of the organization’s policies
and practices.
Employee-Consumer Communication:
The harmonious relationship that LIC has, through the years , built and
maintained with its customers has only been possible due to its dedicated
and committed team of Development Officers and scores of Insurance
Agents throughout the country.
Press Conferences
54
Press Conferences are organized to announce new appointments of top
executives, introduction of new schemes, etc. It is very important in today’s
world because Now – a – days people are being aware about the
appointment procedure of different companies and consumer are also getting
educated day by day because of which it becomes necessary for the
companies to keep press conferences.
55
Audio-Visual Communication
Television and Radio broadcasts are a basic medium of consumer
communication. Now –a-days it gaining a lot of importance.
Television and Radio advertising
The corporation’s advertisements reached nearly 25 crore people through
over 50 campaigns. There were 79 hours of TV advertising and 408 hours of
Radio advertising.
Trans-slides
56
The Corporation has placed trans-slides at strategic places, like Railway
Stations and Airports, for maximum exposure to public at large.
Printed Communication
At LIC printed communications are used in conjunction with oral
communication media.
Press Release
Press releases are frequently handed out to the media by the local PR
department on behalf of the company. These generally comprise of any
subject or issue concerning the company, containing information for policy
holders or any item of news value to the media and its readers.
57
Journals and Publications
The corporation takes out its annual working results and several other
publications from time to time to keep the public abreast of the happenings
and achievements at LIC.
Financial Results
The annual financial report of the corporation is published in the National
dailies and is also circulated amongst the shareholders to keep them
informed. It also aims at attracting new investors.
Booklets, Brochures and Pamphlets
Booklets, Brochures and Pamphlets are generally taken out to inform its
internal and external public about its various new schemes and act as an
effective medium of print communication.
Posters and Hoardings
These tools are not only an advertising medium but also a very effective PR
tool. LIC uses posters and hoardings to get quick public notice. Posters and
hoardings are widely placed throughout the city at busy intersections like
subways, railway stations, roadsides, bus shelters, etc.
58
Other Amenities Provided by LIC
Website
The Corporation’s website www.licindia.com gives information about the
corporation’s products, services, subsidiaries and addresses of branches and
about premium payment through the internet. It also provides
Press releases
News sections
Online policy status
Online Premium Payment
LIC has tied up with HDFC Bank, ICICI Bank, UTI Bank, Bank of Punjab,
Global Trust Bank, Corporation Bank, The Federal Bank Ltd., Citibank, and
service providers like Bill Junction.com, timesofmoney.com to offer the
online premium payment facility to its customers in select cities.
Information Kiosks
The corporation has installed online information kiosks at prominent places
across the country. This provides information about the Products, services
