INTRODUCTION OF PUBLIC RELATIONS

Public relations, also known as PR, is defined as a set of communications techniques whichare designed to create and maintain favourable

relations between an organization and itspublics . PR is a form of communication thatwell supports and adapts to a company’s various advertising

components. As much as itworks to strengthen these components, there is also one obvious difference betweenadvertising and PR. Advertising

controls the overall message of the organization and buildsvisibility, while public relations reaches in and provides the advertising message

withcredibility and trust . While marketing builds brand, PR amplifies brand awareness. Thetrouble is that while PR and marketing are two sides

of the same coin, in many companies thedisciplines fail to cooperate. There is often also a failure to distinguish where marketing endsand PR

starts. If people in the community are asked to mention five competitors in the samebusiness and they do not mention yours, probably the

competitors use PR more effectively.PR is arguably the broadest of the marketing communication disciplines, involving a widerange of activities

and specializations used to deliver corporate and brand messages. PR hasdeveloped from efforts focused on selling products to a corporate

advisory role. As a result,PR activities can be classified as long-term, brand building options.Over the last decade communication with audiences

considered important to an organizationhas developed into a central focus of corporate strategy . Companies want tobuild good relations with

their shareholders, with suppliers, distribution channels andcustomers. External operators such as trade and professional associations, and local

chambersof commerce are other organizations that companies might wish to influence. Also journalistsand representatives from various

publishers are groups with which the organization mustmaintain good relations .Public relationsis a management function practiced by a wide

range of organizations:companies, governments, non-profit organizations, the educational system, labour unions, politicians, organized sports,

and the media. Their goal is to achieve positive relationshipswith various publics in order to effectively manage the organization’s image and

reputation.Its publics may be externals like customers, news media, investment communities, the generalpublic, and governments, or internals

like shareholders and employees .

PR IN BANKS

Earlier research shows that PR is one of the most important parts when considering thepromotion mix in the banking industry. The nature of the

business with a need of high levelsof trust, explains the importance of public opinion to be successful. The bank’s most effectivetool to monitor

and manage this opinion is through extensive use of PR activities. Recentresearch also shows that the banking industry has been caught in a

negative trend regardingreputation, which could have been avoided through PR activities.In the banking industry services provided are to a high

degree similar, which makes it hard tomake a comparison between banks and their offerings. Therefore in banking, credibility andvalue is mainly

gained from the organization’s reputation. It is also argued that reputation isthe most valuable asset of a bank.Due to the obvious importance of

PR activities in banking industry and because of existing research does not fully described the PR aspects continuously handheld by banks to

build upon their reputation ,our aim in this study is to shed more light over the PR activities handheld by banks.

DEFINITION OF PUBLIC RELATION

"Public Relations are a management function which tabulates public attitudes, defines the policies, procedures and interest of an organization

followed by executing a program of action to earn public understanding and acceptance.”

HISTORY

According to Edward Bernays, public relations is "practically as old as society." Some books and universities identify a Babylonian tablet from

1800 BC as the first example of public relations. They also associate audience segmentation tactics used in gospels, political promotions in Rome

and logos used by ancient craftsman as being early examples of public relations. According to Scott Cutlip, there is disagreement over whether

these ancient events constitute public relations or are part of its history.

Public relations as a paid profession began in 1900, when the first public relations agency, The Publicity Bureau, was founded. Ivy Lee and

Edward Bernays, who are both referred to as the father of public relations, helped establish the field as a professional practice in the United

States. Basil Clarke is considered the profession's founder in the UK and Arthur W. Page is considered the father of corporate public relations.

The field became more established after World War II, in part due to talent from war-time publicity efforts moving into the private sector. Trade

associations, industry publications and academic journals were developed. Some of today's largest PR agencies were founded in the 1950s and

began competing globally in Europe and Asia in the beginning in the '60s and '70s.

The 1990s were marked by "explosive growth" for the public relations field. Internet technologies and social media changes public relations

tactics, agencies consolidated and new specialties were introduced such as investor relations and community relations. The field established a

degree of professionalism, though to what extent is debated.

PUBLIC RELATION INVOLVES-

1. Evaluation of public attitudes and opinions.

2. Formulation and implementation of an organizations procedures and policy regarding communication with its publics.

3. Coordination of communications programs.

4. Developing rapport and good-will through a two-way communication process.

5. Fostering a positive relationship between an organization and its public constituents.

OBJECTIVE

•Public relations provides an organization or individual exposure to their audiences using topics of public interest and news items that do not

require direct payment.

• The aim is often to persuade the public, investors, partners, employees and other stakeholders to maintain a certain point of view about the

company, its leadership, and products or of political decisions.

• Common activities include speaking at conferences, winning industry awards, working with the press, and employee communication.

•It provides relevant information on planning technical and organizational developments, inventions and their potential utilization, etc. •the

scope of public relation is wide and also include political field. Entrepreneurs, teachers, political leaders, social workers, religions, leaders are

all involved in public relations day in and day out. In business public relation is tool of management like marketing, production and

finance. It is investing and creating asset for an organization which is finally reflected in improved performance profitability, and

growth of the organization.

SCOPE

•Public relation is a window of the corporation through which management can monitor external changes

• We find regular conflicts between employer-employee consumer-manufacturer, management-shareholders, citizens-government and so on

due to misconception and misunderstandings. These are generally the major challenges where public relation practitioners can play a crucial

role. They should get to know the psychology of the public mind and acquire skill in solving and also avoiding such conflicts

Other public relations activities include:

•Publicity events

•Books and other writings

•Collateral literature, both offline and online

•Direct communication

•Blogs

•Social media and social networks

FUNCTIONS

1. Community Relations-Organizations can implement various programs to improve community relations on a regular or even ongoing basis.

So, clearly, one of the major functions of public relations is to bridge the business/community gap. When organizations support activities and

programs that improve quality of life in their communities their image and reputation will be enhanced.

2. Employee Relations-The most important resource that a company has are its employees and the customer service they provide. The

functions of public relations in regards to the company’s employees is the maintenance of employee goodwill. The image and reputation of a

company among its employees is also another responsibility of public relations in its function of employee relations.

3. Product Public Relations-•When new products are introduced to the market the role that public relations plays is crucial for creating

awareness and differentiating the product in the public’s eyes from other similar products. When existing products need a push public relations

is often called on the improve product visibility.

4. Financial Relations-This function involves communication with the wide variety of individuals and groups that the company deals with in

the course of its operations. This includes the stockholders and investors but is not limited to them. Financial analysts and potential investors

have to be informed about the company’s finances. A well planned and executed financial relations campaign can increase the value of the

company’s stock because of improved image and reputation. This improved image can also make it easier to gather additional capital.

FEATURES OF PUBLIC RELATIONS IN SERVICE SECTOR

The service sector possesses some distinctive characteristics which require a different PR programme. This special feature of service

demands a new vision, innovation and a class of professional excellence to market the services effectively and profitably.

The following are important characteristics:

I. Intangibility:

Services are intangible, we cannot touch them. They are not physical objects. In influencing and motivating the customer in services the

functional responsibility of PR is quite different. The feature of intangibility complicates the role of PR professionals. The PR personnel do not

find it easy to display the positive and negative opinions regarding services. It requires a different outlook.

ii. Perishability:

Unlike labour, services too are perishable. They have a high degree of Perish ability. Here the element of times assumes importance.

Services cannot be stored. Unutilized services are an economic waste. Services have a high level of perish ability.

This perish ability nature of services complicates the functioning of PR professionals. The PR executives must use their professional skills and

minimize waste, regularity and consistencies are very important to minimize perish ability.

iii. Inseparability:

Services are generally created or supplied simultaneously. They are inseparable. For an example, the entertainment industry, health-experts and

other professionals create and offer their services at the same time. Services and their providers are closely associated and thus not separable.

While promoting relations, the PR professionals bear the responsibility of the service built-in in the product as promised.

iv. Heterogeneity:

This characteristic of services makes it difficult to set a standard for any service. The quality of service cannot be standardized, customers rates

the services in different ways. This is due the difference in perception of individuals at the level of the providers and users.

As there is no scope for transfer of ownership in the process of providing services, the PR personnel find it difficult experience. Hence he needs

to be more careful.

v. Ownership:

In case of services the user only has an access to the services, he cannot own the services, and he cannot own the services. The ownership remains

with the provider, as there is no scope for transfer of ownership, the PR personnel requires world class professionalism.

vi. Simultaneity:

Services cannot move through channels of distribution and cannot be delivered to the potential customers and users. Thus, either users are

brought to the services or providers go to the users. It is right to say that services have limited geographical area. The PR executives must

promote optimum good relations by using their professional skills.

PUBLIC RELATIONS: A MULTIFACETED 

ACTIVITY

If we examine some of the goals and objectives of public relations, it becomes clear that it is a multifaceted activity involving many different

functions. Topping the list of objectives, public relations seeks to create, maintain, and protect the organization's reputation, enhance its prestige,

and present a favorable image. Studies have shown that consumers often base their purchase decision on a company's reputation, so public

relations can have a definite impact on a company's sales and revenue. Public relations can be an effective part of a company's

overall marketing   strategy. In the case of a for-profit company, public relations and marketing may be coordinated to be sure they are working to

achieve the same objectives.

Another major public relations goal is to create goodwill for the organization. This involves such functions as employee relations, stockholder and

investor relations, media relations, community relations, and relations with the many other publics with whom the organization interacts, affects,

or is affected by.

Public relations also has an educational component that can help it achieve such goals as outlined above. Public relations may function to educate

certain publics about many things relevant to the organization, including educating them about business in general, new legislation, and how to

use a particular product as well as to overcome misconceptions and prejudices. A nonprofit organization may attempt to educate the public

regarding a certain point of view. Trade associations may undertake educational programs regarding particular industries and their products and

practices.

PUBLIC RELATIONS AND TWO-WAY 

COMMUNICATION

Effective public relations requires a knowledge, based on analysis and understanding, of all the factors that influence perception of and attitudes

toward the organization. The development of a specific public relations campaign follows these basic steps, which can be visualized as a loop that

begins within the organization, extends to the target audience(s), and returns back to the organization.

While a specific public relations project or campaign may be undertaken proactively or reactively, the first basic step in either case involves

analysis and research to identify all the relevant factors of the situation. In this first step the organization gains an understanding of the key factors

that are influencing the perceptions of the organization and the nature of the publics involved.

The second step, policy formation, builds on the first. Here the organization establishes an overall policy with respect to the campaign, including

defining goals and the desired outcome as well as the constraints under which the campaign will operate. It is necessary to establish such policy

guidelines in order to evaluate proposed strategies and tactics as well as the overall success of the campaign.

In step three strategies and tactics are outlined. Here the organization brings into play its knowledge of its target audiences and develops specific

programs consistent with established policies to achieve the desired objectives. Then the organization is ready for step four, actual

communication with the targeted publics. Specific public relations techniques, such as press conferences or special events, are employed to reach

the intended audience.

Up to this point the public relations loop has gone in one direction from the organization to its target audiences. In step five the loop turns back

toward the organization as it receives feedback from its publics. How have they reacted to the public relations campaign? Are there some

unexpected developments? Here the organization listens to its publics and, in the final step, assesses the program and makes any necessary

adjustments.

PUBLIC RELATIONS PRACTICES AND 

TECHNIQUES

Public relations is a multifaceted activity involving different publics and audiences as well as different types of organizations, all with different

goals and objectives. Specific areas of public relations will be reviewed next, with examples of practices and techniques and their use in

effective campaigns covering a variety of situations. Many of the examples cited first appeared as case studies in the weekly PR News and were

later collected in the PR News Casebook.There are various types of PR as follows .

PRODUCT PUBLIC RELATIONS.

Public relations and marketing work together closely when it comes to promoting a new or existing product or service. Public relations plays an

important role in new product introductions by creating awareness, differentiating the product from other similar products, and even changing

consumer behavior. For example, when the Prince Matchabelli division of Chesebrough-Pond's USA introduced a new men's cologne, there were

21 other men's fragrances being introduced that year. To differentiate its new offering, called Hero, Prince Matchabelli created a National Hero

Awards Program honoring authentic male heroes and enlisted the participation of Big Brothers/Big Sisters of America to lend credibility to the

program. When Coleco introduced its Cabbage Patch Kids, public relations helped increase awareness through licensed tie-in products, trade

show exhibits, press parties, and even window displays in Cartier jewelry stores. When one bank began using automated teller machines (ATMs),

it created a friendly new image of the new customer-operated machines by introducing them first to children. Public relations can also help

introduce new products through staging a variety of special events and in the handling of sensitive situations.

Public relations is often called on to give existing products and services a boost by creating and renewing visibility. The California Raisins

Advisory Board organized a national tour featuring live performances by the California Dancing Raisins to maintain interest in raisins during a

summer-long advertising hiatus. The tour generated national and local publicity through media events, advance publicity, trade promotions, and

media interviews with performer Ray Charles. Before denim became fashionable, the Denim Council helped gain public acceptance of the fabric

with a multifaceted campaign that included a range of special events, book tie-ins, promotional giveaways, and specially designated "Denim

Weeks," resulting in high-profile magazine and newspaper feature stories.

Other public relations programs for existing products involve stimulating secondary demand, as when Campbell Soup Co. increased overall

demand for soup by publishing a recipe booklet. Identifying new uses for the product, as when Rit Household Dyes took advantage of the tie-

dyeing craze of the 1960s and 1970s to increase demand for its products, is another way to stimulate interest in an existing product. Public

relations can interest the media in familiar products and services in a number of ways, including holding seminars for journalists, staging a special

media day, and supplying the media with printed materials ranging from "backgrounders" (in-depth news releases) to booklets and brochures.

Changes in existing products offer additional public relations opportunities to focus consumers' attention. An effective public relations campaign

can help to properly position a product and overcome negative perceptions on the part of the general public.

EMPLOYEE RELATIONS.

Employees are one of the most important publics a company has, and an ongoing public relations program is necessary to maintain employee

goodwill as well as to uphold the company's image and reputation among its employees. The essence of a good employee relations program is

keeping employees informed and providing them with channels of communication to upper levels of management. Bechtel Group, a privately

held complex of operating companies, published an annual report for its employees to keep them informed about the company's operations. The

company used employee surveys to determine what information employees considered useful. A range of other communication devices were

used, including a monthly tabloid and magazine, a quarterly video magazine, local newsletters, bulletin boards, a call-in telephone service, and

"brown bag" lunches where live presentations were made about the company. Suggestion systems, which originated in World War II, are another

effective way to improve employee-management communications.

Other public relations programs for employees include training them as company public relations representatives; explaining benefits programs to

them; offering them educational, volunteer, and citizenship opportunities; and staging special events such as picnics or open houses for them.

Other programs can improve performance and increase employee motivation and pride. Public relations also plays a role in recruiting new

employees; handling reorganizations, relocations, and mergers; and resolving labor disputes.

FINANCIAL RELATIONS.

Financial relations involves communicating not only with a company's stockholders, but also with the wider community of financial analysts and

potential investors. An effective investor relations plan can increase the value of a company's stock and make it easier for it to raise additional

capital. One successful plan involved financial presentations in ten major cities, mailings to the financial community, and financially oriented

advertisements, resulting in the stock price increasing 50 percent and the price-earnings ratio doubling. In some cases special meetings with

financial analysts are necessary to overcome adverse publicity, negative perceptions about a company, or investor indifference. Such meetings

may take the form of full-day briefings, formal presentations, or luncheon meetings. A tour of a company's facilities may help generate interest

among the financial community. Mailings and ongoing communications can help a company achieve visibility among potential investors and

financial analysts.

Annual reports and stockholder meetings are the two most important public relations tools for maintaining good stockholder relations. Some

companies hold regional or quarterly meetings in addition to the usual annual meeting. Other companies reach more stockholders by moving the

location of their annual meeting from city to city. Annual reports can be complemented by quarterly reports and dividend check inserts.

Companies that wish to provide additional communications with stockholders may send them a newsletter or company magazine. Personal letters

to new stockholders and a quick response to inquiries ensure an additional measure of goodwill.

COMMUNITY RELATIONS.

Comprehensive, ongoing community relations programs can help virtually any organization achieve visibility as a good community citizen and

put the organization on the receiving end of the goodwill of the community in which it is located. Banks, utilities, radio and television stations,

and major retailers and corporations are some of the types of organizations most likely to have ongoing programs that might include supporting

urban renewal, performing arts programs, social and educational programs, children's programs, community organizations, and construction

projects. Support may be financial or take the form of employee participation.

Organizations have the opportunity to improve goodwill and demonstrate a commitment to their communities when they open new offices,

expand facilities, and open new factories. One company increased community awareness of its presence by converting a vacant building into a

permanent meeting place. Another company built its new headquarters in an abandoned high school that it renovated. Mutual of Omaha

scheduled an anniversary celebration and awards dinner to coincide with the dedication of its new underground office building to generate

additional media coverage.

One of the more sensitive areas of community relations involves plant closings. A well-planned public relations campaign, combined with

appropriate actions, can alleviate the tensions that such closings cause. Some elements of such a campaign might include offering special

programs to laid-off workers, informing employees directly about proposed closings, and controlling rumors through candid and direct

communications to the community and employees.

Organizations conduct a variety of special programs to improve community relations, including providing employee volunteers to work on

community projects, sponsoring educational and literacy programs, staging open houses and conducting plant tours, celebrating anniversaries, and

mounting special exhibits. Organizations are recognized as good community citizens when they support programs that improve the quality of life

in their community, including crime prevention, employment, environmental programs, clean-up and beautification, recycling, and restoration.

Sometimes it is necessary for an organization to gain community support for a particular action, such as a new development or factory. One real

estate   developer elicited favorable media coverage and brought praise from local government by preserving a historic estate that was on a site

that had been proposed for development. A utility company mobilized its employees to win community support for a proposed nuclear power

plant. They participated in a telephone campaign, attended council meetings in area communities, and volunteered as guides for plant open

houses.

CRISIS COMMUNICATIONS.

Public relations practitioners become heavily involved in crisis communications whenever there is a major accident or natural disaster affecting

an organization and its community. Other types of crises involve bankruptcy, product failures, and management wrongdoing. After the San

Francisco earthquake of 1989, the Bank of America utilized its public relations department to quickly establish communications with customers,

the financial community, the media, and offices in 45 countries to assure them the bank was still operating. When faced with bankruptcy,

Chrysler Corp. embarked on an extensive public relations campaign under the direction of its public affairs department to persuade Congress to

approve a $1.2 billion government loan guarantee. In some cases, crises call for an organization to become involved in helping potential victims;

in other cases, the crisis may require rebuilding an organization's image.

GOVERNMENT AND POLITICAL PUBLIC RELATIONS.

Public relations in the political arena covers a wide range, including staging presidential debates, as the League of Women Voters has done,

holding seminars for government leaders, influencing proposed legislation, and testifying before a congressional committee. Political candidates

engage in public relations, as do government agencies at the federal, state, and local levels.

Trade associations and other types of organizations attempt to block unfavorable legislation and support favorable legislation in a number of

ways. The liquor industry in California helped defeat a proposed tax increase by taking charge of the debate early, winning endorsements,

recruiting spokespersons, and cultivating grassroots support. A speakers bureau trained some 240 industry volunteers, and key messages were

communicated to the public through printed materials and radio and television commercials.

In another example, many cities considered adopting legislation that banned the sale of spray paint to retail customers because of a rash of

graffiti. The National Paint and Coatings Association launched a campaign that focused on the crime of vandalism. The collective research that

went into the campaign resulted in an ongoing legislative monitoring operation through which the industry is alerted to new developments.

PUBLIC RELATIONS IN THE PUBLIC INTEREST.

Organizations attempt to generate goodwill and position themselves as responsible citizens through a variety of programs conducted in the public

interest. Some examples are environmental programs that include water and energy conservation, antipollution programs, and generally

publicizing an organization's environmental efforts. Health and medical programs are sponsored by a wide range of nonprofit organizations,

health care providers, and other businesses and industries. These range from encouraging other companies to develop AIDS in the workplace

policies to the American Cancer Society's Great American Smokeout.

A variety of programs for young people may be conducted in the public interest. These range from providing educational materials to schools to

sponsoring a radio program for students and teachers. International Paper developed a program to help older students and recent graduates

improve their reading and writing skills by having celebrities write "how-to" articles that were printed as advertisements in popular magazines

and major newspapers. Other programs offer political education, leadership and self-improvement, recreational activities, contests, and safety

instruction.

CONSUMER EDUCATION.

Organizations have undertaken a variety of programs to educate consumers, building goodwill and helping avoid misunderstandings in the

process. Some examples of trade association activity in this area include the Soap and Detergent Association preparing a guide on housecleaning

to be used in educational programs for new public housing residents. The National Association of Manufacturers held local open houses to

educate the public about local businesses. The general public was allowed to make toll-free telephone calls to a pesticide symposium conducted

by two agricultural associations. The automotive industry established the Automobile Information Council as a source of industry news and

information. An association of accountants undertook to educate the public concerning new tax laws.

Other opportunities for educating consumers include sponsoring television and radio programs, producing manuals and other printed materials,

producing materials for classroom use, and releasing the results of surveys. In addition to focusing on specific issues or industries, educational

programs may seek to inform consumers about economic matters and business in general.

OTHER PUBLIC RELATIONS PROGRAMS.

Other types of programs that fall under the umbrella of public relations include corporate identity programs ranging from name changes and new

trademarks to changing a company's image and identity. Milestones and anniversaries are observed in a variety of ways to improve an

organization's public relations.

Special events may be held to call attention to an organization and focus the public's goodwill. These include anniversary celebrations, events

related to trade shows, special exhibits, fairs and festivals, and other types of events.

Speakers bureaus and celebrity spokespersons are effective public relations tools for communicating an organization's point of view. Speakers

bureaus may be organized by a trade association or an individual company as well as by virtually any other type of organization. The face to-face

communication that speakers can deliver is often more effective than messages carried by printed materials, especially when the target audience is

small and clearly defined.

The examples of public relations practices given here indicate the range of activities and functions that fall within public relations. It is clear that

while communication is the essence of public relations, an effective public relations campaign is based on action as well as words. Whether it is

practiced formally or informally, public relations is an essential function for the survival of any organization.

PUBLIC RELATIONS AND THE INTERNET

The Internet and the World Wide Web and the use of electronic mail has given public relations practitioners a new tool for communicating with

journalists and editors in the media. According to Paul Krupin, compiler of The U.S. All Media E-Mail Directory, "Media executives are

increasingly adapting to the use of e-mail as a preferred method for receiving news releases." Electronic public relations is most effective for

those companies whose products and services are web- or computer-oriented, and even though media contacts may prefer to receive news

releases via e-mail, they still evaluate each release on the basis of its content. Krupin also noted in a 1998 article for Directory World, "The lion's

share of media still rely on faxes, telephones, and street mail, pretty much in that order."

Also affected by the World Wide Web are press kits, which used to consist of a large folder filled with glossy photos, corporate bios, and

narrative press releases. More effective for the World Wide Web are online press kits, which consist of video news releases, still images, and a

wealth of background information—all available online at a company's Web site or e-mailed to media contacts. Benefits to using an online press

kit include lower costs and making more information available to journalists. Photographs and news releases can be easily downloaded, saving

valuable time for the user.

In addition to including current information, corporate Web sites often contain an archive of news releases going back in time. They may also

contain other public relations items, such as a corporate history or timeline, annual reports, and profiles of corporate officers. Companies with an

interest in public relations will be using the World Wide Web to find new opportunities to communicate their messages to their publics.

Types of Public Relations Tools

the challenges faced in doing PR will lead many marketers to hire professionals to handle these activities. 

Whether marketers do their own PR or seek outside help, it is important they be familiar with the tools available for public relations. Marketers

have at their disposal several tools for carrying out public relations. The key tools available for PR include:

Media Relations

Media Tours

Newsletters

Special Events

Speaking Engagements

Sponsorships

Employee Relations

Community Relations and Philanthropy

Before choosing among the various tools marketers should begin by identifying their targeted audiences (e.g., target markets) and key messages

they wish to send. These should align with the messages and audiences identified for the product being promoted or corporate goals for non-

specific product promotions, such as corporate image promotions.

The key messages are used in the development of public relations materials and supporting programs described below. The purpose of key

messages is to provide a consistent point of view over time and across numerous PR methods that reinforce product positioning (i.e., customer's

perceptions) and reach the desired target audience.

Media Relations

Historically the core of public relations, media relations, includes all efforts to publicize products or the company to members of the press — TV

and Radio, newspaper, magazine, newsletter and Internet. In garnering media coverage, PR professionals work with the media to place stories

about products, companies and company spokespeople. This is done by developing interesting and relevant story angles that are pitched to the

media. It is important to remember that media placements come with good stories and no payment is made to the media for placements. In fact, in

order to maintain the highest level of credibility, many news organizations bar reporters from accepting even the smallest gifts (e.g., free pencils

with product logo) from companies.

Key tools used in media relations include:

Press Kits - Include written information such as a news release, organization background, key spokesperson biographies and other supporting

materials that provide information useful to reporters.

Audio or Video News Releases - These are prerecorded features distributed to news media that may be included within media programming.

For instance, a local news report about amusement parks may include portions of a video news release from a national amusement park

company.

Matte Release - Some media, especially small local newspapers, may accept articles written by companies often as filler material when their

publication lacks sufficient content. PR professionals submit matte releases through syndicated services (i.e., services that supply content to

many media outlets) or directly to targeted media via email, fax or snail mail.

Website Press Room - While hard copies of materials are used and preferred by some media, marketers are well served by an online press

room that caters to media needs and provides company contact information.

As PR people know, many story ideas for newspapers, magazines and television news often start with a suggestion from a PR person. If things

work out, a reporter or editor will, at best, write a positive story with the company as a key feature or, at minimum, include the company’s name

somewhere within an industry-focused article.

Media Tour

Some new products can be successfully publicized when launched with a media tour. On a media tour a company spokesperson travels to key

cities to introduce a new product by being booked on TV and radio talk shows and conducting interviews with print and Internet reporters or

influencers (e.g., bloggers). The spokesperson can be a company employee or someone hired by the company, perhaps a celebrity or "expert" who

has credibility with the target audience. One common use of the media tour is the book tour, where an author travels the country to promote a

newly released book. A media tour may include other kinds of personal appearances in conjunction with special events, such as public

appearances, speaking engagements or autograph signing opportunities.

Newsletters

Marketers who have captured names and addresses of customers and potential customers can use a newsletter for regular contact with their

targeted audience. Newsletters can be directed at trade customers, final consumers or business buyers and can be distributed either by regular mail

or electronic means (i.e., e-newsletters delivered via email or rss feed). Marketers using newsletters strive to provide content of interest to

customers as well as information on products and promotions. A bookstore may include reviews of new books, information on online book chats

and information on in-store or online promotions. A food manufacturer may include seasonal recipes, information on new products and coupons.

Online newsletters offer the opportunity to link to stores carrying the marketer's products. Effective newsletters are sought out by and well

received by interested audiences.

Special Events

These run the gamut from receptions to elegant dinners to stunts. Special events can be designed to reach a specific narrow target audience, such

as individuals interested in college savings plans to major events like a strawberry festival designed to promote tourism and regional agriculture.

Stunts, such as building the world’s largest ice cream sundae during National Ice Cream month captures the attention of an audience in the

immediate area, but also attracts the attention of mass media such as TV news and major newspapers, which provide broad reach. The Oscar

Mayer Weiner mobile is a classic example, providing a recognizable icon that travels the country garnering attention wherever it visits. As with

all PR programs, special event planners must work hard to ensure the program planned conveys the correct message and image to the target

audience.

Speaking Engagements

Speaking before industry conventions, trade association meetings, and other groups provides an opportunity for company experts to demonstrate

their expertise to potential clients/customers. Generally these opportunities are not explicitly for company or product promotion; rather they are a

chance to talk on a topic of interest to potential customers and serve to highlight the speaker’s expertise in a field. Often the only mention of the

company or its products is in the speaker biography. Nevertheless, the right speaking engagement puts the company in front of a good target

audience and offers networking opportunities for generating customer leads.

Sponsorships

Companies and brands use sponsorships to help build goodwill and brand recognition by associating with an event or group. Marketers can

examine sponsorship opportunities to find those that reach target groups, fit within a specified budget and provide sponsorship benefits that suit

the marketer’s objectives. There are numerous local, regional, national and international sponsorship opportunities ranging from a local art center

or theatre to the Olympics. Most organizations seeking company sponsors provide information on the variety of sponsorship levels which include

data on event audience, exposure opportunities, which can include signage, T-shirts, public announcements and numerous other opportunities,

receptions and much more. Marketers can use this information to help match sponsorship opportunities with the company’s objectives.

Employee Communications

For many companies communicating regularly with employees is important in keeping employees informed of corporate programs, sales

incentives, personnel issues, as well as keeping them updated on new products and programs. Companies use a variety of means to communicate

with employees, including Intranet, email, online and print newsletters. In larger firms an in-house PR department often works in conjunction

with the Human Resources Department to develop employee communications.

Community Relations and Philanthropy

For many companies fostering good relations with key audiences includes building strong relationships with their regional community.

Companies implement programs supportive of the community ranging from supporting local organizations and institutions (e.g., arts

organizations, community activities, parks) to conducting educational workshops (e.g., for teachers, parents) to donating product for community

events and charitable fundraisers. The goal is generally to develop a positive relationship with members of the community (i.e., be known as a

good neighbor). Effective community relations can help a company weather bad publicity or a crisis situation that can unexpectedly arise due to a

problem with a product, unethical behavior by management, or even by false rumors. Some companies also make an effort to contribute to

charitable organizations, often organizations that have some relationship to the company’s mission or to a key principal of the company.

Public Relations Management Roles

Public relations can and should make an important contribution in helping to form an organization’s ideas about what it is, what it should do and

what its publics want and expect from it. 

Communication Management

The public relations role that calls for developing communications objectives that are consistent with an organization’s overall objectives. As

two-way communicators, public relations practitioners interact directly with key publics, relaying the resulting information (with

recommendations) to other members of the management team.

Crisis Management

Establishing methods and policies to be used when an organization’s operations become involved in an emergency affecting the public. This

includes policies and procedures for the distribution of information to employees, media, government and other key publics. 

Issues Management

This involves identifying problems, issues and trends relevant to an organization and then developing and executing a program to deal with

them. Included is the study of public policy matters of concern to an organization.

Relationship Management

This involves the role of public relations in identifying key publics and establishing strategies for building and maintaining mutually beneficial

relationships with those publics.

Reputation or Image Management

The planning and implementing of policies, procedures and strategies that demonstrate an organization’s commitment to public and social

responsibility, ethical behaviour, corporate identity and reputation with key publics.

Resource Management

PR’s management of human and financial resources revolves around setting objectives, planning, budgeting, recruiting and hiring PR staff and

administering those resources.

Risk Management

As preventive PR, this role involves helping an organization recognize areas of potential danger and recommending needed changes before

potential dangers develop into crises.

Strategic Management

Acting as a counselor, the PR practitioner serves on the management team helping the organization develop sound policies that are in the best

interests of the public as well as the organization. The PR practitioner integrates an understanding of the concerns and attitudes of key publics

into the organization’s managerial decision-making process.

2.2 FUNCTIONS AND TOOLS IN PR

PR specialists and firms use a number of tools and techniques to boost their clients’ public image and help them form a meaningful relationship

with the target audience. To achieve that, they use tools such as news releases and statements for media, newsletters, organisation and

participation at public events conferences, conventions, awards, etc.. PR specialists of course also utilise the Internet tools such as social media

networks and blogs. Through the mentioned tools, PR specialists give the target audience a better insight into their clients’ activities and

products/services as well as increase publicity.

Other PR TOOLS

Three categories that divide the tools of PR, depending on theamount of control the company has in its communication. Since the tools which can

beutilized in PR, are well known tactics in organizations, they are not described in further terms.

Controlled PR

When a company can control the use and placement of their PR tools they are utilizingcontrolled channels. Examples of tools in this category are:

Publications: Brochures, flyers, newsmagazines

Annual reports

Displays, exhibits

Product placements

Speakers

Photographs

Staged events (open houses, anniversary celebration)

Uncontrolled PR

When companies relies the use and placement of their PR to media, they are usinguncontrolled channels. Examples of tools in this category are:

Publicity (radio, TV and print media)

News releases (print, audio, video, e-mail)

Press conferences and media advisory (media kits, fact sheets, background

information)

By-lined articles

Talk and interview shows

Semi-controlled PR

When some aspects of the PR activities are controlled and initiated by the company, but otheraspects remain uncontrolled, they are utilizing semi-

controlled channels. Examples of tools inthis category are:

Special events and sponsorship

Interpersonal communication

Electronic communication (web sites, chat rooms)

Word of mouth

When utilizing above mentioned tools, PR teams needs to work closely with the marketing

department. PR tends to complement advertising activities. While advertising is pushing a

banks desired message to its markets, PR is there to sprinkle the message with credibility.

Banks often realize the importance of PR activities, but may differ in the way they are utilized

in the marketing mix.

2.2.4 PR: Effectiveness and evaluation

As in advertising, PR effectiveness and evaluation is based on setting measurable objectivesin the beginning of the planning . The ability to

monitor, measure, evaluateand plan content in its relevant context thereafter becomes critical for most PR practice as aground of competitive

advantage (Phillips, 2001). Schmitz (2004) states that it is as importantto follow-u,p measure and evaluate PR activities as in fact to implement

them. Xavier et.al(2005) put forward that there is no general method for measuring effectiveness, insteadpractitioners select among an array of

different methods and models to demonstrate theeffectiveness of PR activities. Evaluation models can be categorized into those focusing on a

specific process of PR or those accommodating an integrated planning approach (ibid.).According to Wells (2003) PR practitioners must track the

impact of a campaign in terms ofoutput, how many news releases lead to stories or mentions in news, and outcome like attitude

or behaviour change. Such tracking is done to prove the effectiveness of PR programs and tolearn from it to be able to fine-tune further PR

activities (ibid.). Evidently there is a lack ofknowledge on how much evaluation techniques there are, and how much it is worth to utilize

them in order to provide the organization with good evaluative information (Phillips, 2001).To measure and evaluate PR activities initiated by the

organization, Schmitz (2004) providestwo general ways to do it: Do it yourself by reading newspapers and magazines, relevantwebsites, check

out what is mentioned about your organization in radio and TV. This is a verytime consuming activity and therefore it can be more effective to

outsource this activity to amedia-monitoring agency. Further, it is recommended to mix own monitoring, and media-monitoring agencies to get

out as much valuable information as possible .

Following is a guideline with common types of evaluationmeasures used in PR:

Output Production. Numbers of PR products, such as news releases or eventactivities generated.Distribution. Number of media outlets (TV

stations, newspapers) receiving PRproducts.Coverage. Number and size of clips, column inches, seconds, or minutes of time or

space.Impressions. Media placements multiplied by circulation or broadcast reach.Advertising value. Equivalent ad cost for time or space.

Systematic Content Analysis. Positive or valence (whether the story or mentionseems to be more positive or negative), key messages (the idea in

the story), sources,and prominence.

According to Beavers-Moss (2001) it is important for the bank to

identify what gain isexpected from the PR activities. If the goals are defined explicitly and measurably, they areeasier to achieve.

Step one: setting objectives

What are the goals or objectives of your PR program? What is your PR program or activityseeking to accomplish?PR, what you try to accomplish

usually falls into one of these four categories:

1. You, or your organization, are trying to get out certain messages, themes or ideas.

2. You would like these messages or ideas distributed to certain key or target audiencegroups.

Outcome Objectives achieved:

Awareness. Aided and unaided to recall the target audience.

Attitudes. Perceptions and preference or intent to buy.

3. Your envision distributing these messages to your target audiences via certain pre-selected or specific communications channels.

4. For what you say, for how you say it, and to whom, there are certain short-term orlong-term “ends” or objectives you are interested in

accomplishing. Based on how andwhat you say and do, you would like those you reach to respond in a certain way.

Step two: determining levels of PR measurement

After setting the PR objectives, then you have to decide what exactly you want to measure. Inthis guideline there are three different measures of

PR effectiveness.

Level 1: Basic Level

It measures PR “outputs”. It examines how well PR people present themselves, how they

handle given activities or events. At this level, PR practitioners measure the amount of

exposure their organization received in media, the total number of placements, the total

number of impressions, and/or the likelihood of having reached specific target audience

groups. To measure "outputs," PR practitioners often use content analysis techniques to track

or measure publicity placements. Or, conduct simple public opinion polls to find out if

targeted groups have been exposed to certain messages.

Level 2: Intermediate Level

This level is more sophisticated. At this level, PR practitioners measure whether or not targetaudience groups actually received the messages

directed at them: whether or not they paidattention to the messages, whether or not they understood the messages, and whether or notthey have

retained those messages in any shape or form. To measure "outgrowths,"practitioners usually rely on a mix of qualitative and quantitative data

collection techniques,using such methodologies as focus groups, depth interviews with opinion-leader groups, andextensive polling of key target

audience groups either by telephone, face-to-face, or throughmail.

Level 3: Advanced Level

This level is the most advanced PR measurement level. When one reaches this higher end ofthe Effectiveness Yardstick, the "outcomes", such as

opinion, attitude, and behaviour changeare measured. To measure "outcomes", the PR practitioner needs to rely on: techniques suchas before-and-

after polls; the development and use of experimental and quasi-experimentalresearch designs; use of unobtrusive data collection methods such as

observation,participation, and role-playing; the use of advanced data analysis techniques (such asperceptual mapping, psychographic analysis,

factor and cluster analysis, and conjointanalysis); or the conducting of comprehensive, multi-faceted communications audits.

NEED FOR PUBLIC RELATION

According to Public Relations News, "Public relations is the management function which evaluates public attitudes, identifies the policies and

procedures of an individual or an organization with the public interest, and plans and executes a program of action to earn public understanding

and acceptance."

While the public part implies inclusion of things like public affairs, community relations, investor relations, public press conferences, media

events, internal communications and crisis communications, it also involves a lot of behind-the-scenes, non-public activity. It could involve

simply the writing of a press release, but it could also involve coordinating media contacts for an event or conference, securing credentials,

lobbying for article placement and the like.

Sometimes public relations is an effort to influence the public. This is especially true for political action groups, associations and other groups.

Sometimes public relations is community relations. Just look around your own community to see how many companies and organizations have a

community affairs initiative or a person in charge with a related title. In larger, publicly held firms, this person is sometimes the director of

investor relations. Investors are a public entity, so in this case public relations is appropriate.

What the public wants to hear is a good story. Good PR is the telling of a good story. The better the story, the better the acceptance by the public

and the better the public relations. Of course if the story is especially appealing to those that could be your clients, then you could have a PR

homerun. In this case, it is communication with your target market that may or may not be very public.

PR's importance is changing, according to The Fall of Advertising and the Rise of PR (HarperBusiness). American marketing strategists Al and

Laura Ries argue that public relations has become the most effective way to build a brand. Well-known brands like The Body Shop, PlayStation

and Harry Potter spend little on brand-name advertising. The same is true for many entrepreneurial companies like yours. Business owners

become known in their respective fields of concentration many times through public relations and the associated media generated.

PR is communication in many ways with your target market. Maybe instead of public relations we ought to call it target market relations or TMR.

You may be communicating about a new product, spreading news about your company or making a major announcement. You want to

communicate publicly, but the only people you care about are potential prospects, customers or investors, in the case of a partnership or a public

company. One exception may be communication to a group that you are trying to influence for the best interest of your company and target

market. An example of this is lobbying government.

Define what your public or target is in your public relations effort. This is best done by defining your target market and then any sub-segment.

Lining up publications and broadcasts with the market and the segments will define what the public is for your public relations.

The bottom line is to get word out about you, your company, your products and services to those who could potentially buy from you. Public

relations is just one part of marketing, as marketing is made up of many things. The good news about PR is the cost and the effectiveness when

it's in front of your target market.

OBJECTIVES OF PUBLIC RELATIONS

Like other aspects of marketing promotion, public relations is used to address several broad objectives including:

Building Product Awareness – When introducing a new product or relaunching an existing product, marketers can use a PR element that

generates consumer attention and awareness through media placements and special events.

Creating Interest – Whether a PR placement is a short product article or is included with other products in “round up” article, stories in the

media can help entice a targeted audience to try the product. For example, around the holiday season, a special holiday food may be promoted

with PR through promotional releases sent to the food media or through special events that sample the product.

Providing Information – PR can be used to provide customers with more in depth information about products and services. Through articles,

collateral materials, newsletters and websites, PR delivers information to customers that can help them gain understanding of the product.

Stimulating Demand – A positive article in a newspaper, on a TV news show or mentioned on the Internet, often results in a discernable

increase in product sales.

Reinforcing the Brand – In many companies the public relations function is also involved with brand reinforcement by maintaining positive

relationships with key audiences, and thereby aiding in building a strong image. Today it is ever more important for companies and brands to

build a good image. A strong image helps the company build its business and it can help the company in times of crises as well.

Additional PR Activities

In addition to serving as means for helping to achieve marketing objectives, public relations professionals may undertake additional activities,

aimed at maintaining a positive image for an organization. These activities include:

Market Monitoring

Monitoring public comment about a company and its products is becoming increasingly important especially with the explosion of information

channels on the Internet. Today monitoring includes watching what is written and reported in traditional print and broadcast media and also

keeping an eye on discussions occurring through various Internet outlets such as forums, chatrooms, blogs and other public messaging areas.

Marketers must be prepared to respond quickly to erroneous information and negative opinions about products as it can spin out of control very

quickly through the new technology channels. Failure to correct misinformation can be devastating to a product or company’s reputation. It

should be noted that specialized monitoring services can be contracted to help companies keep track of “buzz” about the company and its

products.

Crisis Management

Marketers need to be prepared to respond quickly to negative information about the company. When a problem with a product arises — in fact or

substantiated only by rumor — a marketer’s investment in a product and brand can be in serious jeopardy. Today, with the prevalence of the

Internet and wireless communications, negative information can spread rapidly. Through monitoring marketers can track the issues and respond

in a timely fashion. To manage response effectively, many companies have crises management plans in place that outline steps to take and

company spokespeople to speak on behalf of the company should an event occur.

The Benefits of the PR Professional

While some marketers may prefer to handle their own PR tasks, many others will seek the assistance of outside PR professionals rather than

attempt to handle these activities themselves. Skilled PR professionals offer many advantages for marketers with their two most important being:

1. their ability to understand and unearth good stories about a company and its product

2. their knowledge of the media market may place them in a better position to match stories to the news angles media reporters look for-

3. PR Trends: Corporate Blogging

Blogs may be most famous as a tool for political discussion, but they are also becoming an important communication tool for public relations.

Blogs may be most famous as a tool for political discussion and used as a personal journal for individuals, but these are also becoming powerful

communication tools for public relations.  Many companies in high-tech fields, such as eBay, Google, and Microsoft, and traditionally low-tech

fields, such as General Motors, McDonalds, and Wells Fargo Bank, now produce in-house blogs that report on happenings at the company. 

These blogs enable company employees, including CEOs and marketers, to post messages updating company developments and, consequently,

serve as a useful PR tool.  As with corporate news, blog postings can also be quickly communicated to news media and others via social media

and RSS feeds.

While in the past developing such website applications was considered time-consuming and often overly technical undertaking for the vast

majority of marketers, this has changed with the evolution of easier to use site development applications which allow for quick creation and

convenient updating of site content such as blogs.  In fact, severeral free blog services are available making the creation of a blog as easy has

writing a word processing document

PR Trends: Social Media

By far the most significant trend to affect public relations in the last 25 years is the impact played by social media.  In a matter of just a few years,

social networks, including Facebook, Twitter, and Linkedin, have created opportunities for monitoring and communicating that are quickly

raising these methods to the top of the list of PR tools.  But while it offers tremendous PR advantages, social media also poses significant threats. 

One of the most pressing issues is that social media forces PR professionals to respond rapidly to negative or misleading information.  In effect,

social media is turning PR into a 24-hour job, particularly for global companies. 

Also, the time required to monitor and respond to the growing number of social media outlets is forcing some companies to place less emphasis

on traditional public relations tasks, such as the creation of press kit materials.  Since social media is still evolving as a PR tool, it is unclear if

shifting workload to social media will carry the same return on investment as what is offered with traditional PR tools.

Advantages of Public Relations

Public relations offers several advantages not found with other promotional options. First, PR is often considered a highly credible form of

promotion. One of PR’s key points of power rests with helping to establish credibility for a product, company or person (e.g., CEO) in the minds

of targeted customer groups by capitalizing on the influence of a third-party -- the media. Audiences view many media outlets as independent-

party sources that are unbiased in their coverage, meaning that the decision to include the name of the company and the views expressed about the

company is not based on payment (i.e., advertisement) but on the media outlet’s judgment of what is important. For example, a positive story

about a new product in the business section of a local newspaper may have greater impact on readers than a full-page advertisement for the

product since readers perceive the news media as presenting an impartial perspective of the product.

Second, a well-structured PR campaign can result in the target market being exposed to more detailed information than they receive with other

forms of promotion. That is, media sources often provide more space and time for explanation of a product.

Third, depending on the media outlet, a story mentioning a company may be picked up by a large number of additional media, thus, spreading a

single story to many locations.

Finally, in many cases public relations objectives can be achieved at very low cost when compared to other promotional efforts. This is not to

suggest public relations is not costly, it may be, especially when a marketer hires PR professionals to handle the work. But when compared to the

direct cost of other promotions, in particular advertising, the return on promotional expense can be quite high.

Disadvantages of Public Relations

While public relations holds many advantages for marketers, there are also concerns when using this promotional technique. First, while public

relations uses many of the same channels as advertising, such as newspapers, magazines, radio, TV and Internet, it differs significantly from

advertising in that marketers do not have direct control over whether a message is delivered and where it is placed for delivery. For instance, a

marketer may spend many hours talking with a magazine writer, who is preparing an industry story, only to find that their company is never

mentioned in the article.

Second, while other promotional messages are carefully crafted and distributed as written through a pre-determined placement in a media vehicle,

public relations generally conveys information to a member of the news media (e.g., reporter) who then recrafts the information as part of a news

story or feature. Thus, the final message may not be precisely what the marketer planned.

Third, while a PR campaign has the potential to yield a high return on promotional expense, it also has the potential to produce the opposite if the

news media feels there is little value in running a story pitched (i.e., suggested via communication with the news outlet) by the marketer.

Fourth, with PR there is always a chance that a well devised news event or release will get “bumped” from planned media coverage because of a

more critical breaking news story, such as wars, severe weather or serious crime.

Finally, in some areas of the world the impact of traditional news outlets is fading forcing public relations professionals to scramble to find new

ways to reach their target markets.