TYBMS SEM 5

1. Corporate Communication and Public relation
UNIT 2

2. Public Relation
o Public relations is communicating your organization’s messages at the right time and in the
right place to the right audience.
o With the proliferation of tools and technologies, we can measure the value of those efforts
and how they align with a business’ overall mission.Public relations helps an organization and
its publics adapt mutually to each other.
o Public Relations broadly applies to organizations as a collective group, not just a business; and
publics encompass the variety of different stakeholders.

3. Essentials of Public Relations:-
o Human Relations between the organization and its target audience.
o Sustained a consistent effort to influence public opinion.
o Aware the masses, instruct about its benefits and persuade to favor the opinion towards an
organization’s benefits.
o Build a rapport and dialogue.

4. Objectives of Public Relations:
o Marketing Public Relations (MPR):- MPR is the use of PR strategist and techniques to activate marketing
objectives. The purpose of MPR is to gain awareness, stimulate sales, facilitate consumption, and build
relationships between consumer, companies, and brands.
o Build the company brand: – PR can influence perceptions, attitudes, and behaviors. PR runs on the
Pareto 80:20 principle leveraging the fact that, “the few have an extraordinary influence on the many. “PR
provides last mile connectivity to each of the targeted audiences – internal and external.
o Manage company’s reputation: A company manages good reputation if it manages healthy relationships
with its 7 key audiences:-
o Customers
o Investors
o Employers
o Competitors
o The Local community
o Government
o The public at large.

5. Scope of Public Relation
o Evaluation of public attitudes and opinions.
o Formulation and implementation of an organizations procedures and policy regarding
communication with its public.
o Coordination of communications programs.
o Developing rapport and good-will through a two-way communication process.
o Fostering a positive relationship between an organization and its public constituents.

6. Significance of PR in Business:-
o Product/Services/Concept/Company launches
o News of awards/recommendations and affiliations/prestigious recognition
o Inaugural functions/expansions/diversifications/financial results
o Foreign tie-ups/high value orders/joint venture collaboration
o New management/broad level appointments/key –business opportunities
o Philanthropic activity/corporate citizenship initiative/welfare schemes
o Exhibitions/workshops/contests/trade-fairs/buyer and seller meets/expositions.
o Apex associations/corporate organization meets.
o Crisis management/damage control exercise/Trade and industry problems.

7. Emergence of Public Relation
o The scope of Public relations work is clearly nothing like it was in early times.
o The pattern of its development can be seen in the four orienting traditions:the rhetorian
and press agent tradition ,the journalist publicity tradition,the persuasive communication
campaign tradition,and finally a relationship –building and two-way communication
tradition.

9. Public Relations in India:-
o PR in India – The Pre- Independence Period:-
o It is believed that Tata Iron and Steel Company (TISCO) opened their public relations
department in 1943 in Bombay (now in Mumbai). It also started a monthly publication next
year for employee communication.
o Some also believe that systematic function of PR started with the Indian Railways. The
reason for building the railways, carrying raw materials from one part of the country to
another seems to be a riskier affair, therefore, they started using promotional messages for
passengers inside the train to recover the cost.

10. PR in India – Post Independence:-
o India opted for mixed economy model post-independence. The government gave lots of
preference to Public sector organization. This led to the start of Industrial Policy Resolution
of 1948 and followed by Industrial Policy Resolution of 1956.
o The Government implemented policies based on import substitution industrialization and
advocated a mixed economy where the government-controlled public sector was expected
to co-exist with the private sector.

11. Current State of PR in India:-
o PR in its new avatar not just encompasses media relations and employee communication,
but is used increasingly for strategic communication, brand building, customer relations,
and crisis management.
o From an executive function, PR is now becoming a part of the high-level management job
touching upon the core values of an organization.
o PR in India is fast emerging as an institution especially with its growing acceptance as a
skilled and specialized profession.

12. Reasons for Emerging International Public
Relations:-
o Integrated and independent economy: – The concept of free trade policy, single market,
and fewer investment barriers have connected countries globally.
o But, the open door of other countries to enter into foreign markets has also developed lots
of complications in economic environment related to employee, clients and political and
economic factors as well. This resulted in the organization to consider public relations
counselor more seriously.
o It is imperative for an organization who do business across the sphere because they help an
organization, individual, social organization to deal with absentee ownership, handle
sensitive matter related with cultures of other peoples, combat ethnic and religious hatred
of centuries.
o Today, the government also employ PR practitioners to win the world support for their
foreign policy goals, promote tourism and establish nation’s identity in the world
community.

13. o New Communication Technologies:oday, the world is full of information thanks to the
availability of various sources of electronic media and sites at an exponential rate.
o The internet, satellites, supersonic jet travel gives lots of accessibility to people to get inform
and aware.
o New communication technologies have given lots of benefit to PR professionals too in their
work, content, flatten the organizational structure and more connect with the public.

14. Public Relation Environment
o The functions and decision of public relations (PR) are influenced by internal and external
environment.
o The internal environment is generated within the organization which influences in the decision
making of PR.
o They are controllable factors and comprise of personnel, infrastructure facilities, organization
facilities etc.
o The external environment is not under the control of an organization. It may include
competition, industry problems, a threat of substitutes, social cultural factors, political factors,
economic factors and many others which are externally related to an organization
o It is uncontrollable factors and the business entity can only try to minimize it but can’t control
it.

15. Social and Cultural:
o Stakeholder Part of Society: – stakeholders are also a part of society. Their values and beliefs
come from broader societal influences. For instance – the interest of society in health and fitness
developed ample opportunities for fitness centers, nutritional products, fitness industries.
o Socio-Cultural trends: – A social system with high degree of civilization, mobility industrialization
and urbanization are the primary factors impacting the business. Business depends on the social
environment for all the needed inputs. Therefore, it is rightly said that business is one unit of the
total social system. No business can control the social belief, culture, heritage, family systems,
religion etc. but, they can influence them to a limited extent.
o Restrictive Legislation:-It is essential for PR practitioners to guide the organization to follow the
ethical paths. It will help them to avoid any serious legislation activity. For E.G. when many
companies started generating profits and revenues, at that time they split their businesses or
diverse it into some other field too.
o Demographic and Economic Change: – Due to the changes in demographic and economic
changes, many companies have garnered the opportunity. The concept of “DINK (Double Income
and No Kids)” has brought significant changes in couple lifestyles, the standard of living, etc.
today, as many women aspire to achieve high in their life, therefore, they choose too baby later in
their life. This led them to spend more on baby accessory items, giving a better life, child care
midwives and education. It also opens a way to movies and television shows to produce serials
center for families and children.

16. Economic:-
o The growth in an economy, interest rates, government policies, support agencies,
contributions, inflation rates, fiscal policies, foreign exchange rates, and foreign trade
balances are among the most critical economic factors.
o The economy also has an impact on consumer demand for products and services. Mostly,
organizations to assess the effect of economic factors model their business environments
using different scenarios.
o The major economic factors which have a considerable influence on business include
growth strategy, labour legislation, industrial relations, stock exchange and its regulations,
commodity exchange, price policy, exit policy, export promotion, technological environment
etc.
o the PR should be well versed with all these terms and use it while making their PR decisions
in a company.

17. Political Issues:-
o Politics and business have a close connection.
o The government itself is a political boy created by a political system.
o There are numbers of business legislation enacted by the government which regulates
business transactions.
o The current changes in political dynamics impact the businesses on a larger scale.
o The government who is in power makes the suitable or favorable changes in the economy
which benefit the businesses and large, the nation.
o A successful PR analyze the prevailing political environment and then formulate strategies
to avail of the opportunities emerging out of a political system.

18. Legal Environment:-
o Legal aspects of business regulate both economic and non – economic issues.
o For E.G. the announcement by the government to demonetize Indian rupee has drastically
impacted many business sectors.
o Many times government passed the acts to bring changes in the Indian economy and give
benefit to the masses.
o Therefore, PR professionals have to take a keen interest in the legal aspects affecting the
performance of the functions and have to adopt a constructive role in this relationship.

19. Theories of Public Relation
o Theories explain how to make public relations more effective for organization and society.
Theories provide an understanding of the relationship between actions and events.
o PR practitioners consider several theories when they make decisions about how they can build
a successful relationship with their public.

20. Systems theory:-
o Systems theory is made up of interrelated parts, adapting and adjusting to changes in the
political, economic and social environment in which they operate.
o • It is used to explain how public relations helps understand and manage the relationships
an organization has with its stakeholders and publics who make up its environment.
o • Generally, the organization who focus on their clients, customers and other stakeholders
are the part of open systems. They are open to new ideas and positive criticism.
o • We use system theory not only to examine the relationship with our external
stakeholders but also to look at the internal functions and stakeholders of our organization.
Based on the requirement of organizations, they decide to give the leverage to be given to
unit or department.
o • In systems theory, public relation practitioners advise the dominant coalition, the
primary decision makers of the organization, about problems and opportunities in the
environment and help these decision makers respond to the changes.
o • In systems theory, as it is based on relationships, therefore, it is interconnected. The
environment imposes constraints on the organization.
o • The decision maker’s organization mostly influences the policies of businesses. Here, the
decision makers of an organization allow for the two-way flow of resources and information
between the organization and environment.

21. Situational Theory:-
o The situational theory actually explains and useful to understand that public wants rather
than organization choice of information to distribute. It also assumes that public will pay
attention and seek out information that is in their best interests.
o Grunig and Hunt theorized that public range from those who actively seek and process
information about an organization or an issue of interest, to those publics who passively
receive information. According to these researchers, three variable predict when public seek
and process information about an issue: Problem Recognition, constraint recognition, and
level of involvement.
o • Problem recognition – It is important for people to first recognize an issue and its
potential impact on them. E.g. 3s is an organization which works in the area of sanitation.
They have understood that many Indians, especially in rural areas, do not have toilet
facilities.
o • Constraint recognition – Describes the way people see the problems which stand before
the solutions. E.g. they have tried to identify the reasons and did connect to the access to
the reason for it.
o • Level of involvement – Actually, here the organization seeks the involvement of people
in the cause. E.g. they actually identify the group of people who has an high involvement
with an issue and suggest the solutions to them. 3s came up with a concept of moving
toilets which are highly accepted and appreciated initially by some regions but now they
have major clients in all over India

22. Social Exchange Theory:-
o Social Exchange Theory uses the economic metaphor of costs and benefits to predict
behavior.
o • This theory was propounded by John Thibaut and Harold Kelley applies to many fields
of study, including interpersonal communication, public relations, and theories of
organizations.
o • People always have the expectation to get their reward high and cost low. But, not at the
cost of their customers. Sometimes, it is difficult for organizations to look for a long term. In
that case, it is essential for public relations practitioners to let the decision maker of an
organization analyze the whole range of options along with the associated costs and
rewards.
o • For E.G. A company who supplies a product to their customers and understand that
there is a defect in their products that has already been shipped to customers. In that
situation, a company has to take a decision which helps them to save their customers and
costs and give them high rewards. A public relations practitioners will analyze the whole
situations and suggest the best possibilities for an organization which will help them to save
huge loss in future.

23. Diffusion Theory:-
o Diffusion theory is another way to look at how people accept and process information.
o • They have identified the following five steps to accept the idea of diffusion:-
o 1. Awareness. The individual has been exposed to the idea.
o 2. Interest. The idea has to arouse the individual.
o 3. Evaluation. The individual must consider the idea as potentially useful.
o 4. Trial. The individual tries out the idea on others.
o 5. Adoption. This represents final acceptance of the idea after having successfully passed
through the four earlier stages.
o • This theory helps to reach important decisions. Here, the first importance is given to
mass population than the personal contacts.

24. o For E.g. an amusement park wants a maximum family to visit their parks with family.
o They understand that cost of their park is very high therefore they came up with a scheme for
students to visit their park free along with their I- card and whosever accompany them, will
get 10 % discount in their tickets. A company wants more students to visit their park.
o So, in that regards, they started promoting their ideas through various colleges and send
them flyers (Awareness). After sending them flyers, they have started highlighting the most
interesting concepts or theme for which students should visit the place (Interest).
o After that, they give them possible alternatives so that they decide the best for them
(Evaluation). After that, few students visit and get the nice feel of the park (Trial) and give
mouth publicity to their groups and all known people.
o And suddenly, the find that many people have started visiting the park and it has become a
huge hit (Adoption).