Meaning
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According to Edward L. Bernays, “Public Relations is the attempt by information, persuasion and
adjustment to engineer public support for an activity, cause, movement or institution.
Nature
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6 . PR is a Management function
5 . it is the relationship between the public and the org.
4 . Involves evaluation of public opinion towards policies, procedures and actions of the
3 organisation
2 . Ensures the organisation’s actions are socially responsible
1 . Action and communication programmes
. Create and maintain harmonious relationship between organisation and the public
. PR ≠ Propaganda, PR recognises ethical conduct and seeks to achieve mutual
understanding . But propaganda is guided by self-intesest and is and instrument to gain
social control
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4Management Function
. Anticipating, analysing and interpreting public opinion attitudes and issues which might
3 impact for good or bad the operations and plans of the organisation
. Counselling management at all levels of the organisation with regard to policy and decision
2 making, courses of action, communication etc.
. Researching, conducting and evaluating programmes of action and communication to
1 achieve informed public understanding necessary to the success of an organisation’s
aims.
. Planning and implementing the organisation’s efforts to influence or change public policy
. Setting objectives, planning, budgeting, recruiting and training staff, development
facilities; in short managing the resources needed to perform all of the above
7Importance of PR
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5 . Building goodwill and positive image
4 . Increase sales and revenue
. Growth and diversification
3 . Communicating strategy and policy
2 . Attracting and retaining talent
1 . Gaining acceptance of the community
. Collecting Funds
Scope of PR
Employee Relations
. Expansion in industrial workforce has created serious problems in communications and
relations with the employees of the organisation
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. Foundation to good employee relations is sound personnel policies and their impartial
2 implementation.
. Failure to inform employees about corporate policies and developments affecting their
interests leads to misunderstanding and criticism.
. Two-way channels between management and their workers are required.
Stockholder Relations
. Management should consider the stockholders as its actual owners.
. Individual investor is unable to understand complex data, management should provide the
stockholders with current information about the financial position and future prospects of
the corporation.
. Financial institutions and security analysts and detailed information as they have the skill
to interpret them.
. Objective of shareholder relations programme is to reduce shareholder criticism and
organised opposition to management.
. Both written communication and personal contacts are required. Reports, shareholder’s
meetings, films and lectures are used.
Consumer Relations
. Consumers determine the success and the failure of a business enterprise.
. Consumers and consumer groups are increasingly demanding their rights.
. Corporations seek to retain goodwill of consumers by regularly communicating with them
through sales representatives, meetings, surveys, mailings, magazines and literature.
. Good consumer relations depend heavily on product and services provided to consumers.
Distributor Relations
. Most manufacturers market their products by wholesalers and retailers. A manufacturer
must maintain a close contact with his distributors and ensure profitable business.
. Mutual understanding and cooperation between manufacturer and distributors is in
interest of both.
. Literature, personal visits, meetings, phone calls etc. are used to communicate with
distributors
Supplier Relations
. Manufacturers depend upon suppliers for raw-materials, components and spares, tools
etc.
. Large manufacturers cannot operate without the help of suppliers. Producers realise that
their suppliers are a primary source of quality products, sales and profits.
. Meetings, visit to suppliers, literature and correspondence are the main means of
communication with suppliers.
Government Relations
. The interests of businesses and government are becoming synthesised to the common
advantage of both of them.
. There is an increased recognition on the part of businesses executives of the importance
of developing and effective partnership with government.
. Business is taking an increasingly active participation in government affairs
Community Relations
. Business serves the community by providing regular employment, local taxes, financial
benefits etc.