SYLLABUS

Class – B.Com VI Sem. (Management)

Subject – Sales Promotion & Public Relation

UNIT – I Nature and importance of sales promotion, its role in marketing,

forms of sales promotion, trade oriented sales promotion and sales
force oriented sales promotions

UNIT – II Major tools of sales promotion, samples, point of purchase displays,

demonstration, Exhibitions, Fashion shows Sales contests, Games of
change and skill, Lotteries, Gift offers, premium and free goods,
price packs, Rebate, Patronage rewards.

UNIT – III Conventions, Conference and trade shows, specialties and

novelties, developing and sales promotion programmers,
pretesting implementation, evaluating the results and making
necessary modifications.

UNIT – IV Public Relations: Meanings, features, growing importance role in

marketing, similarity between. Publicity and PR. Major tools of
PR; News Speeches, special events, handouts and leaflets, audio-
visual, public service activities, miscellaneous tools.

UNIT – V Ethical and local aspects of sales promotion and public relations.

45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com
1
 Unit I
Meaning and Definition of Sales Promotion
Sales promotion refers to many kinds of incentives and techniques directed towards consumers and traders
with the intention to produce immediate or short term effects. In fact, whenever a marketer increases the
value of its products by offering an extra incentive to purchase a brand or product, it is creating a sales
promotion. The objective of sales promotion is to encourage ‘action’, although promotion can also help build
identity and awareness.
A few definitions of ‘Sales promotion’ are quoted below:
1. American Marketing Association (AMA) offering this definition: “Sales promotion is media and
non-media marketing pressure applied for a predetermined, limited period of time order to stimulate
trial and impulse purchases, increase consumer demand, or improve product quality.”
2. More recently, the Council of Sales Promotion Agencies offered a somewhat broader definition:
“Sales promotion is a marketing discipline that utilizes a variety of incentive techniques to structure
sales-related programme targeted to consumers, trade, and/or sales levels that generate a specific,
measurable action or response for a product or service.”
3. William Stanton defines sales promotion as “demand-stimulating devices to supplement
advertising and facilitate personal selling.” He further writes that examples of sales promotion
devices are coupons, premiums, in-store displays, trade shows, samples, in-store demonstrations, and
contests.
4. Definition by Institute of Sales Promotion, UK, “Sales promotion comprises that range of techniques
used to attain sales/marketing objectives in a cost-effective manner by adding value to a product or
service either to intermediaries or end-users, normally but not exclusively within a defined time
period.”
5. Don E. Schultz and William A. Robinson offer this definition, “Sales promotion is the direct
inducement or incentive to the sales-force, the distributor, or the consumer, with the primary
objectives of creating an immediate sale.”
6. According to Roger A. Strang, “Sales promotions are short-term incentives to encourage purchase or
sale of a product or service.”
7. In the words of Richard J. Semenik, “Sales promotion is the use of incentive techniques that create a
perception of greater value among consumers, the trade, and business buyers.”
8. In the words of Louis J. Haugh, “Sales promotion has been defined as a direct inducement that offers
an extra value or incentive for the product to the sales-force, distributors, or the ultimate consumer
with the primary objective of creating an immediate sales.”

Nature, Characteristics or Various Aspects of Sales Promotion

1. Target: Sales promotions are conducted by producers and middlemen. The target for producers’
sales promotions may be middlemen, end users-households or business users-or the producer’s own
sales-force.
2. Categories: There are three categories of sales promotion: trade promotions, directed to the
members of the distribution channel; consumer promotions, aimed at consumers; and sales force
promotion directed at salespeople to motivate them to increase their selling efforts.
3. Extra Incentive: Sales promotion involves some type of inducement that provides an extra incentive
to buy. The incentive may also be a free sample of the product, given in hopes of generating a future
purchase.

4. Acceleration Tool: Sales promotion is designed to speed up the selling process and maximize sales
volume. Sales promotion techniques can motivate consumers to purchase a larger quantity of a brand
or shorter the purchase cycle of the consumers by encouraging then to take more immediate action.

45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com
2
 5. Immediate Impact: Sales promotion can often be implemented quickly and get sales results sooner
than advertising. Philip Kotler says, “Sales promotion offers reasons to buy now.”
6. Focus on Short-Term Action: Sales Promotion objectives usually focus on promoting some short-
term action. The desired action by an employee might be a special effort to satisfy customer or more
emphasis on selling a certain product.
7. Non-Media Activity: Sales promotions are sometimes referred to as non-media activity or as ‘below-
the-line’ activity. This differentiates sales promotions from advertising and publicity and also
includes them as part of the overall promotion mix.
8. Strategic Role: Because of the immediate nature of the impact, sales promotions have, in the past,
been thought of as merely tactical. This view is changing and the strategic role of sales promotions
and their integral role in the promotional mix are being recognized.
9. Planned Activity: The fact that sales promotions can be effective throughout the life of a brand
shows their strategic role. Clearly, sales promotion activities should therefore be planned and not just
in an ad hoc manner.
10. Supporting Activity: Sales promotions are generally used to complement the other promotion
methods.
11. Versatile: Sales promotions are extremely versatile. The different forms of sales promotions are
capable of being used with various groups and designed to achieve different effects. Given this
versatility, sales promotions can be useful throughout the product life cycle.
12. Growing Field: The total spending on sales promotion now exceeds spending on advertising.
Promotional budget is increasing than allocated to advertising. The field of sales promotion has
grown rapidly over the last fifteen years.
13. Marketing Communication: Similar to advertising, sales promotion is one type of marketing. It is
focused on creating action.
14. ‘Action’-the Ultimate Goal: Although an ‘action response’ is the goal of the most sales promotion, it
is also designed to build awareness. But it always focuses on action as the ultimate goal.
15. Effective Marketing Activity: Ultimately, the basic reason for the growth of spending on sales
promotion is that it is now recognized as a very effective marketing strategy.

Objectives of sales promotions:

Sales promotions objectives vary widely. To help ensure the proper application of sales promotion, specific
objectives must be set. These may be as follows:
1. Stimulate Trial Purchase: When a firm wants to attract new users, sales promotions tools can
reduce the consumer’s risk of trying something new. A reduced price or offer of a rebate may
stimulate trial purchase.
2. Stimulate repeat Purchases: In-package coupons goods for the next purchase, or the
accumulation of points with repeated purchases, can keep consumers loyal to a particular brand.
3. Stimulate Larger Purchases: Price reductions or two-for-one sales can motivate consumers to
stock up on a brand, thus allowing firms to reduce inventory or increased cash flow.
4. Introduce a New Brand: Because sales promotion can attract attention and motivate trial
purchase, it is commonly used for new brand introduction.
5. Combat or Disrupt Competitors’ Strategies: Because sales promotions often motivate consumers
to buy in larger quantities or try new brands, they can be used to disrupt competitors’ marketing
strategies. If a firm knows that one of its competitors is launching a new brand or initiating a new
advertising campaign, a well-timed sales promotion offering deep discount or extra quantity can
disrupt the competitors’ strategy.
6. Contribute to Integrated Marketing Communications: In conjunction with advertising, direct
marketing, public relations, and other programmes being carried out by a firm, sales promotions

45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com
3
 suggest an additional value, with price reductions, premium, or the chance to win a prize this is an
additional and different message within the overall communication effort.
7. Increasing Consumption of an Established Brand: Sales promotion can generate some new
interest in an established brand to help increase sales or defend market share competitors.
8. Defending Current Customers: With more new brands entering the market every day and
competitors attempting to take away their customers, many companies are turning to sales plans to
hold present customers and defend their market share.
9. Targeting a Specific market Segment: Most companies focus their marketing efforts on specific
market segments and are always looking for ways to reach their target audiences. Many marketers
are finding that sales promotion tools such as contests, coupons, and samplings are very effective
ways to reach specific geographic and demographic markets.
10. To disrupt Existing Buying Habits: A coupon offering a discount might cause brand switching for
a product such as orange juice or motor oil. For which many consumers do not have strong
preferences.
11. To Attract New Customers: Demonstrations of Products such as vacuum cleaners or food
processors can show people how easy they are to use and how well they perform.
12. To Increase Impulse Buying: End-of-aisle and island displays in supermarkets can increase sales
of a product by as much as 50 percent.
13. To Get Greater Retailer Co-operation: A sporting-goods manufacturer gets additional shelf space
by setting up point-of-purchase displays, training retailers’ salespeople, and providing tote bags to
be given away with purchases.

Other Objectives:
a. To speed up the sales off slow moving products.
b. To check the fluctuations in sales.
c. To clear the excessive inventories.
d. Motivate dealers to stock and sell more.
e. Encourage dealers to participate in display and sales contests.
f. To gain advantageous shelf-space.
g. To increase store traffic.
h. To improve relationship with dealers.
i. To motivate sales-force.
j. To supplement advertising and personal selling efforts.
k. To deflect customers; attention from price.
l. To educate customers and dealers.
m. To develop patronage habits among the customers.
n. To facilitate the market research study on consumer motivates and behaviour.
o. To increase the goodwill of the firm.

Importance of Sales Promotion

1. It is the branch of marketing that informs the consumer about the product.
2. Increase in sales by providing extra incentive to purchase. May focus on resellers (push), consumers (pull)
or both.
3. Attract customer traffic and maintain brand/company loyalty.
4. Reminder functions-calendars, T Shirts, match books etc.
5. Impulse purchases increased by displays
6. Objectives must be consistent with promotional objectives and overall company objectives.
7. Balance between short term sales increase and long term need for desired reputation and brand image.
8. Contests generate excitement esp. with high payoffs.

45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com
4
The Role of Promotion in marketing
Promotion is any form of communication a business or organization uses to inform, persuade, or remind
people about its products and improve its public images. Sales promotion depends upon the type of product
we are selling.
All marketing activities that are used to stimulate consumer purchasing and sales effectiveness uses some
means of sales promotion techniques.

Sales Promotion is one of the important parts of any marketing mix. It involves planning of all promotional
activities (Like Road shows, sponsoring events, Exhibitions etc.) to aware the consumer about the brand or
product so as to increase the sales in terms of both volume & value. This also involves planning of Point of
purchase (POP) & Point of sales (POS) material required for a particular campaign.

1. Objectives of Sales Promotion in marketing

a. Increase sales
b. Inform customers about new products
c. Create a positive store or corporate image

2. Major Characteristics of Sales Promotion in marketing

a. Short term activities
b. Offers some type of incentive
c. Can be successfully used in all channels of distribution.

Forms of Sales Promotions

Sales promotion can be either consumer promotion, trade promotion or sales force oriented .
1. Consumer Sales Promotion - designed to encourage customers to buy a product. It includes samples,
coupons, money refund offers, contest and Prize distribution to winners of promotional schemes are the
more tangible aspect of any such program.
2. Trade Promotional tie-ins - involve sales promotional arrangements between one or more retailers or
manufacturers. They combine their resources (advertising and sales promotional activities) to do a
promotion that creates additional sales for each partner. Trade Promotions - sales promotion activities
designed to gain manufacturers’, wholesalers’, and retailers’ support for a product. More money is spent on
promoting businesses than to consumers.
Slotting allowances - a cash premium paid by the manufacture to a retail chain for the costs involved in
placing a new product on its shelves.
Buying allowances - special price discount given by manufacturers to wholesalers and retailers to encourage
them to either buy a product or buy a larger quantity.
3. Sales force oriented Sales promotions
This type of sales promotions emphasizes to increase and boost up of the morale of the sales people. They are
been offered commission, bonus and other incentives for the increase of the sales so that they work
dedicatedly.
Sales promotion directed towards the sales people is referred to as sales force promotions. These schemes
are intended to motivate sales people to put in more efforts to increase sales, increase distribution, promote
new or seasonal products, sell more deals to resellers, book more orders, develop prospects lists and build up
morale and enthusiasm. Some of these activities are meant to prepare the sales people to do their jobs well
and Sales incentives are given to managers and employees who successfully meet or exceed their company’s
set sales quota.

45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com
5
 Unit II
Major tools of sales promotion
Sales promotion is an action which increases the volume of sales. It aims directly at inducing purchasers to
buy a product for which various ways are adopted like demonstrations, contests, price offs, coupons, free
samples, special packaging and money refund offers & lotteries. These activities are non-recurrent in nature
& is for a short period of time.
Samples, Point of purchase displays, demonstration, exhibitions, and fashions shows sales contests, games of
change & skill. Lotteries, gift offers, premium & free goods, price packs Rebate, Patronage rewards.

Samples – For many customers experiencing is believing. For such potential customers providing a sample
unit is important. In layer sample, more are the chances of conversion but it is more expensive.
Sampling helps to encourage trial use of a new product and it is most appropriate with products that are
frequently purchased. Samples give customers the opportunity to experience products in small quantity
without purchasing the product.

Following factors are kept in mind before sample distribution

1. Sample shall represent same quality
2. It shall have attractive & appealing packaging
3. labelling shall be done on sample which says ‘not for sale’, sample copy’, free good etc.”
4. Market study should be done thoroughly before sample distribution

Advantages
1. Free sample attracts consumer. They are very influential.
2. Quality of the product can be accessed by consumer.
3. It helps consumer to clear doubts and confusion.
4. Helps manufacturer to accelerate the sales of the product.

Disadvantages
1. Sample distribution are mostly for low priced consumer products which are not given much attention
.
2. Distribution costs are also increased in sampling .
3. Buying habits and brand loyalty are rare to change from samples.
4. Samples at times do not reach to the target audience.
5. At times samples are offered at lowest cost by retailers instead of being free.

Price cuts
Reduction in price on an item attracts more and more customers. To do so manufacturer may reduce his
share of profit or give up a part or the whole of the contribution towards overheads but a substantial
reduction may still cover cost.

Premiums
A premium offers substantial saving to the consumer which can result in increasing purchase or additional
quantity of purchase. It depends upon estimates of long term total increase in purchase.

Main objectives of giving away premium are –

1. To establish the image of the product
2. To strengthen consumer loyalty
3. To conquer the competition existing in the market

45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com
6
 4. To increase the sales volume
5. To maintain regular sales of seasonal and less demanded items.
6. To inform the consumers about the new use of the product
7. To create new customers and to make the existing customers as permanent customers
8. To increase sales in specific area of the market
9. To increase the goodwill of the firm
10. To diversify the product line

Factors to be considered while selecting premiums

1. It should be an item of special use for the consumers
2. It should be a low-price item which is not easily available in the market.
3. Is should be attractive and creditworthy item.
4. The consumers must have prior knowledge of the item being offered as premium so that they may be
attracted easily towards the product.
5. The premium should be easy to carry with.

Methods of giving away premiums

1. Direct-give-away method
2. Combination sales methods
3. Purchase privilege plan
4. Exchange of coupons
5. Cash refund offers or rebates
6. Self liquidating method
7. Reusable containers method
8. Patronage rewards
9. Additional weightage/product sales
10. Exchange of new product against the old/second hand goods.
11. Price packs or cent-off deals

Free goods
A free goods promotion is a deviation from straight price-cut. The promotion offer to trade is in the form of
extra quantity of purchased product.” A free goods offer is advantageous to the manufacturer. The actual cost
of manufactured product is less than the price to reseller. The monetary value of the offer is more to the
retailer than the cost to the manufacturer.

Coupons
A coupon may offer a certain reduction in price upon a specific product. This technique may be used in
isolation or in conjunction with other techniques. It can attract customers into a store as the coupon has to be
physically carried to the point of sale, thus it encourages a retailer also to stock a brand that is in demand.
It can be used to encourage customers to visit new store and to a new product or to even to boost the sales of
the existing product.
Coupons technique if used selectively can significantly increase the trial usage. Pepsi, Cadbury, Coca cola etc
use this technique to kill competition edge over market.

Combination offers
Food and drug marketers use combination offers. Sometimes a combination offer introduces a new product
by tying its purchase to an established product at a special price.

45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com
7
Sales Contests and Sweepstakes
A sweepstakes offers prizes based on a chance drawing of entrant’s names. A game has the chance element of
a sweepstake but is conducted over a longer time. According to the American Association of Advertising
Agencies, “A contest is an event that invites the customer to apply skill to solve or complete a special
problem.

Factors to be considered in connection with organizing of contest

1. The terms and conditions of participation in the contest should be clearly specified in the notification.
2. Purchases of any product should be an essential conditions for participation
3. Attractive prizes should be provided for the winners.
4. There should be an option for encashment of prizes announced.
5. The proposed contest should involve the skills and ability of the participants in solving the problems.
6. There should not be much time gap between the closing date of completed entries for the contest and
the declaration of results.
7. Entries in the contest should be prohibited for the employees and their relatives.

Price Discount (cent-off) Rebate

Price discounts (also called cents-off deals) are communicated to the consumers through advertising at the
point-of-purchase by listing the reduced price on the package or signs near the product or window display, or
by the sales people.

Price-pack Deals
Price-packs are also called value-packs. This may take any of the two forms, bonus pack and banded pack. In
case of bonus pack offer, an additional quantity of the same product is offered free when the standard pack
size of the product is purchased at a regular price. This is a way to reward the present consumers and may
not have any impact on the users of competitive brands.

Fashion shows
Some of the large scale producers, organises fashion shows in big cities to publicise for their fashion goods.
This is also an encouragement to the dealers. Many manufacturer sponsor major events and shows to
position their products in the minds of their target audience.

Patronage reward
They are values in cash or in other forms that are proportional to one’s patronage of certain vendors.
Patronage rewards are given to those buyers who are regular buyers of the same producer. Consumers
collect points, credits for purchases and redeem them afterwards for rewards.
These types of premium may be in cash or in kinds. Frequent flying and miles privileges are some of the
examples of such rewards.

Point of purchase (POP) displays

Point of sale is places where customer meets the seller & exchange of goods & services are done. Point of
sales promotion can influence the purchaser. Kiosk flag display shelf or an influencing window can influence
the sales. Prominent signs tags & models may also be used to attract attention to counter display. Pop
promotion that is compatible with a store’s image & its decoration can creates interest & attracts customers’
goods.

45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com
8
Displays and demonstration
The manufacturers provide hundreds of displays, signs and posters to the retailers to be used at the point of
purchase. In addition to this, goods are demonstrated before the consumers to make them aware about the
quality and nature of the product, using handling methods, etc. of the product.

Trade shows and exhibitions

Products are demonstrated in front of the prospective buyers/agents at the shop set up within the pavilion.
Fairs and exhibitions provide an opportunity to come in contact with customers and dealers from different
countries and give wide publicity of the products.

Sponsoring the games and teams

Manufacturing company’s sponsor for different games and sports organized in the country and abroad, to
maintain their goodwill. This will create product and producer image among the people at international level.

Lotteries
A lottery is a form of gambling which involves the drawing of lots for a prize. Prize competitions, unlike
lotteries, do not need a Gambling Act License. A prize competition must require entrants to exercise skill or
judgement or to display knowledge, such that it can reasonably be expected to prevent a “significant
proportion” of people from participating or from receiving a prize.

45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com
9
 Unit III
A formal meeting of members, representatives, or delegates, as of a political party, fraternal society,
profession, or industry. The body of persons attending such an assembly is known as the convention to order.

They are important as they are directly responsible for marketing the brand through "product awareness" to
visitors in their unique ways.
This term is more widely used in travel and tourism; Destination marketing organizations are often called
convention. It promotes the development and marketing of a destination, focusing on convention
sales, tourism marketing, and services. Regardless of the name, these organizations offer many services to the
traveling public.
The convention marketing initiatives are typically achieved through the trade association marketplaces, web
pages, advertising, distribution of promotional and collateral material, direct sales, hosting familiarization
tours for journalists and travel industry personnel, and sponsoring other hospitality functions.

Trade shows and exhibition

An exhibition for companies in a specific industry to showcase and demonstrate their new products and
services. Generally trade shows are not open to the public and can only be attended by company
representatives and members of the press. Also, an exhibition of business offering franchises and/or business
opportunity packages for sale. Products are demonstrated in front of the prospective buyers/agents at the
shop set up within the pavilion. Fairs and exhibitions provide for an opportunity to come in contact with
customers and dealers from different countries and give wide publicity of the products.

Specialties and novelties

Novelties are special customized gifts or souvenirs goodies likes table decor times, penholders, key chains,
glasses, trolls, pet rocks, wallet etc which are embedded with companies logo willing to promote themselves
or their product. As a category, novelties have grown . According to Dennis Hall, professor at the University of
Louisville explains Novelties as “a medium of communication that carry meaning between the giver and the
receiver,” or its owner and invited observer.”

Process or Major Decisions in sales promotion

1. Establishment of sales promotion objectives
2. Developing the sales promotion programme
3. Selecting the Sales promotion tools
4. Pre-testing of sales promotion
5. Implementing and controlling the sales promotion
6. Evaluation of Sales Promotion results

Establishment of sales promotion objectives – Sales promotion objective may be derived from marketing
objective developed for the product which is also influenced & vary with its type of target market.

Selecting the Sales promotion tools – Before selection of tool; type of market which is to be focused shall
be confused. Objectives of the sales promotion, competitive conditions and cost of implementing a particular
tool also need to be analyzed before making a choice. Various tools for consumer promotions are samples,
coupons, refund offers, price packs, gifts & prizes, premium & discounts. Trade promotion tools include
conventions and trade shows, dealers’ contests and schemes.

Developing the sales promotion program– To ensure the proper and effective implantation of the
promotional program it is necessary to keep a check upon the program developments for the decision

45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com
10
regarding size of incentives, conditions for participation, distribution vehicle, duration of promotion timing
for promotion, sales budget also need to be considered.

Pre-testing of sales promotion – Pre-testing is important to determine whether the tools are appropriate,
the incentive is optimum and the methods are efficient. It can be based on consumer testing in which they
can be asked to rank on rate different positive deals.

Implementing and controlling the sales promotion – After the testing results, actual program shall be put
to open market and implement proper management and scheduling of time to be monitored else it may result
in failure of the program controlling is important to ensure effectiveness of the program and to know gap,
suggest modification in the original program.

Evaluation of Sales Promotion results – Various ways can be adopted to measure the effectiveness; one
such method can be through analyzing sales data (before & after promotion). Feedback received from the
promotional program also provides a basis of future program.

45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com
11
 Unit IV
Public Relations
Public relations are a deliberate planned and sustained effort to establish and maintain mutual
understanding between an organisation and its “Publics”. It is a social philosophy of management expressed
in policies & practices, which through sensitive interpretation with its publics, strives to secure mutual
understanding & Goodwill.
In other hands, the growing mutual dependence of Business and society has created the concept and need for
a new philosophy, which is known as public relations.

Definition
Public relations is the art and social science of analyzing trends, predicting their consequences counseling
organisation, leaders & implementing planned programmes of action which will serve both the organisation
& public interest. by World Assembly of Public Relations Association
Webster’s New World Dictionary defines public relations as “relations with the general public, as through
publicity, especially those functions of a corporation, organisation etc, concerned with attempting to create
favorable public opinion for itself”.

Characteristics of Public Relations

 It is two-way communication between an organisation and its publics through which they both try to
understand & corporate each other & eliminate understanding.
 Public relations are not only a social philosophy, expressed in policies & actions of a firm, but is also
the communication of mass philosophy to its concerned publics.
 It is a method of establishing mutual understanding between an organisation & its publics
 It is not only art but science also
 It helps in developing favorable or positive image of an organisation & its products among its various
publics.
 It is an important promotion variety of programmes designs to promote or protect a company’s
image or individual product.
 It is the top management function of a firm who continuously monitors the attitudes of the
organisation publics, distribute information and adopt positive programmes to present negative
publicity in first place.

Growing importance role in marketing

Public Relations has become a very important profession as it provides the desired support as and when
needed for the implementation of various programs including marketing. It applies to every sort of
organisation, commercial or non commercial, in the public or private sector. Public relations consist of all
communications with all the people with whom the organisation has contact. Essentially, public relations are
about creating understanding through knowledge, and this often involves effecting change. Community
public relations and domestic public relations are carried out at the local level in order to encourage local
people to treat their guests in a warm and hospitable manner and to contribute to the overall positive
tourism image of the villages. These efforts are aimed at raising the awareness of every inhabitant of the need
to achieve better results in environmental protection and landscaping, cleanliness of front yards and public
surfaces and to accept and support tourism as a potential development factor. According to the Kvarner
Tourist Board includes the Appearances at tourism fairs; Special presentations, workshops; Road show
presentations; Receiving info and study tours; Newsletters, activities under public relations

45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com
12
Publicity - placing newsworthy information about a company, product, or person in the media. Can be used
to promote particular events and promote particular products. The main purpose of publicity is to build an
image. Image - the way a business or organization is defined in people’s minds.

• Advantages of Publicity
– Publicity is free; advertising is not
– Can be used to create a positive image within the community
– Viewed as being more credible or believable than advertising
– Viewed as news, people more attention to publicity
• Disadvantages of Publicity
– Give up much of your control of your message
– Not all publicity is positive

Public Relations and Publicity

The functions of the public relations department have been referred to as publicity. It has been defined by the
American Marketing Association as a “non-personal situation of demand for a product, service or business
unit, by planting commercially significant news about it in a published medium or obtaining a favorable
presentation of it on radio, television or stage that is not paid for by the sponsor”. The information activity of
the public relations department is known as publicity. It is done to enhance the company’s image or promote
its view point and provide information about its products. Public relations are an integral part of the
promotional strategy.

Major tools of PR: News Speeches, Special events, handouts and leaflets, public service activities
Press Conference - a meeting in which media members are invited by the business or organization to hear
an announcement about a newsworthy event.

News Releases and Media Kits

News Release - a pre-written story about the company that is sent to various media for publication. It
usually contains information about the company’s employees, stores, operations, products, corporate
philosophy, or participation in an event or program. Can contain hard or soft news.
– Hard News - information that should be announced right away because the public will want to
know about it immediately
– Soft News - information that does not need to be announced immediately because it will be of as
much interest to the public later as it is now.

Press Kit – It is a folder containing articles, news releases, feature stories, and photographs about a
company, product, or person. Press kits are given to the media to assist them in reporting on the intended
news item.
A news release (or press release), the most widely used PR tool, consists of one or more typed sheets of
information issued to generate publicity or shed light on a subject of interest. News releases cover time-
sensitive hard news. A press kit (or media kit) supports the publicity gained at staged events such as press
conferences or open houses. The kit also contains news story about the event for the broadcast media, news
and feature stories for the print media, and photos and brochures.

Purposes of News Releases

– To introduce new products – To support good employee relations
– To keep the business in the public eye – To create good community relations
– To position the business’s image

45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com
13
How can the News be Released in the Media
– Include a captioned photograph with the release
– Meet media deadlines
– Write an appropriate number of releases
– Direct the release to a specific person
– Advise the staff that you have sent out a release
– Reread the release after setting it aside
– Keep a copy of every release
– Send a cover letter with the release
– Send a thank-you note after the release is used
– Avoid pressuring the editor
– Avoid mentioning publicity or advertising
– Avoid playing favorites

Photos
Photos of events, products in use, equipment, or newly promoted executives can lend credence or interest to
a dull news story. In fact, a photo tells the story faster.

Feature Articles
Many publications, particularly trade publications, run features articles – soft news – about companies,
products, or services. They may be written by a PR person, the publication’s staff, or a third party (such as a
freelance business writer.

Special events, handouts, leaflets and Printed Materials

They may be brochures or pamphlets about the company or its products, letters to customers, or enclosures
that accompany monthly statements, the annual report to stockholders, other reports, or house organs. Their
purpose is to promote goodwill, increase sales, or old public opinion. A well-produced house organ can do a
great deal to motivate employees and appeal to customers. However, writing, printing and distributing can
be expensive-any very time-consulting.

Audiovisual Materials
Audiovisual materials can take many forms, including slides, films, film setters, and videocassettes used for
training, sales, or public relations. Considered a form of corporate advertising, nontheatrical or sponsored
films (developed for public relations reasons) are furnished without charge to movie theatres, organizations,
and special group, particularly schools and colleges.

Public Service Activities

PR activities are focused to the community - company sponsors activities that benefit the civic, social, and
cultural life of the community. Activities can include:
– School partnerships - HP donating computers to the high school
– Sponsorship of community events
– Scholarships

45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com
14
 Unit V
Ethics in business promotion
Integrity and fairness are the very essence of ethical business practices and clean governance.
In the book, Power of Ethical Management, Norman Vincent Peale and Kenneth Blanchard identified a three-
point test to decide whether any action can be considered as ethical. The first test is, is it legal? If it is not
legal, it is not ethical. Any deal or any action that favours some over the others is not ethical. The second test
is, is it fair? When more than one parties are involved, it should be fair to all parties concerned. The third test
is, the conscience test, if the consequence of action taken makes you feel ashamed? Many a time, actions are
taken wherein the organisation who takes the action feels that the action is not ethically fair or correct.
The issue of ethical practices and clean governance has recently become a major issue in public debate
globally for a number of reasons. From the global business point of view, the collapse of the South East Asian
economies in the mid 1997 and the dramatic collapse of the Fortune 500 companies. In a review of the global
business, it is pointed out that honesty is the best policy. It is being rediscovered that three lessons are
important according to The Economist. Be honest, be prepared and be frugal (careful). This emphasis on
going back to the basics in business has brought in many different professions of business and governance
styles into existence.
The focus on clean governance, which includes not only corporate governance in business but also public
governance, has become also a matter of concern. This simultaneous thought has brought into sharp focus
the need for promoting ethical business practices and clean governance. It is therefore appropriate that a
respected body of professionals shall be formed to monitor the ethical practices in promoting in business.
In India there are many such organizations which are working in various section in this concern like ASCI
Advertising Standard Council Of India. AAAI Advertising Agency Association of India, NRS National
Readership Survey, Central Drug Standard Control Organization, National Concern For Women, Central For
International Media Ethics
Approaches to privacy can, broadly, be divided into two categories: free market, and consumer protection. in
contrast, it is claimed that individuals may not have the time or knowledge to make informed choices, or may
not have reasonable alternatives available. any analysis of real populations needs to make approximations
and place individuals into groups. However if conducted irresponsibly, stereotyping can lead to a variety of
ethically undesirable results. marketing may commits any of the following wrongs:
 Damaging personal autonomy. The victim of marketing in this case is the intended buyer whose right
to self-determination is infringed.
 Causing harm to competitors. Excessively fierce competition and unethical marketing tactics are
especially associated with saturated markets.
 Manipulating social values. The victim in this case is society as a whole, or the environment as
well. The argument is that marketing promotes consumerism and waste. TV commercials and direct
mail are common examples. Electronic spam and telemarketing push the borders of ethics and
legality more strongly.

45, Anurag Nagar, Behind Press Complex, Indore (M.P.) Ph.: 4262100, www.rccmindore.com
15