Showing posts with label MARKETING. Show all posts
Showing posts with label MARKETING. Show all posts

Wednesday, 17 February 2016

MEANING AND DEFINITION OF PUBLIC RELATION


MEANING  AND DEFINITION OF PUBLIC RELATION


BY


SMART LEARNING WAY 


       
CONTENTS 

Introduction
Meaning  of  Public  Relation
Definition  of  Public  Relation
Conclusion
Bibliography

INTRODUCTION

What   we  see  on  TV  as  advertisements  for  eggs,  milk and  diamonds  is  not  direct  advertising  as  you  hardly  find  any  sponsor.  Drink  more  milk,  eat  eggs  every  day  are  meant  to  create  awareness  among  the  public  and  hence  can  be  called  PR  campaigns.  Unfortunately,  the  task  of  PR  is  not  appreciated  by  most  of  the  persons  and  it  tends  to  become  a  thankless  one. 

 In  election  campaigns ,after  the  candidate  has  finished  and  gone  his  secretary  remains  to  answer  the  questions  regarding  how  the  speech  should  be  interpreted  for  improving  the  candidate’s  image.  After  the  corporate  Chairman  has  given  an  expose  of  the  firm’s  plans,  its  elaboration  and  explanation  is  done  by  the  PR  persons.  

Press releases  are  part  of  the  PR  job.  In  case  of  any  catastrophe  the  PR  has  to explain  how  the  firm  is  coping   with  It  and  the  damage  control  measures  it  is  going  to  take.  The  famous  oil  spill  in  the  ocean  had  the  oil  company’s  PR  people  on  their  toes.  It  may  be  added  that  in  such  crisis  situations  even  the  CEO  takes  the  role  of  PR.

Meaning

Public relations  involves  the cultivation  of  favourable  relations  for  organizations  and  products  with  its  key  publics  through  the  use  of  a  variety  of  communications  channels  and  tools

Traditionally,  this  meant  public  relations  professionals  would  work  with  members  of  the  news  media  to  build  a  favourable  image by  publicizing  the  organization  or  product  through  stories  in  print  and  broadcast  media.  But  today  the   
   
Role  of  public  relations  is  much  broader  and  includes:

  • Building  awareness  and  a  favorable  image  for  a  company  or  client  within  stories  and  articles  found  in  relevant  media  outlets.
  • Closely  monitoring  numerous  media  channels  for  public  comment  about  a  company  and  its  products.
  • Managing  crises  that  threaten  company  or  product  image.
  • Building  goodwill  among  an  organization’s  target  market  through  community,  philanthropic  and  special  programmes  and  events.
      In  this  chapter,  most  of  our  focus  is  on  how  public  relations  support  marketing   by  building  product  and  company  image.  Yet,  it  should  be  noted  that  are  other  stakeholder   companies  reached  via  the  public  relations  function,  such  as  employees  and  non-target    market  groups.  Favorable  media  coverage  about  a  company  or  product   often  reaches  these   audiences  as  well  and  may offer   potential  benefit  to  the  marketer.

    Finally,  in  most  large  companies,  Investor  Relations (IR)  or  financial  public  relations  is  a  specialty  in  itself  guided  by  specific  disclosure  regulations.  However,  coverage  of  this type  of  PR  will  not  be  provided  here.

DEFINITION 

1)      Edward  L.  Bernays :- 

                         ‘Public  relation  is  the  attempt  by  the  information,  persuasion  and  adjustment  to  engineer  public   support  for  an  activity,  cause,  movement  or  institution.

2)      John  W. Hill :- 

                        ‘The  management  function  which  gives  the same  organized  and  careful  attention  to  the  asset  of  goodwill  as  is  given  to  any  other  major  asset  of  business.’

3)      Herbert  M. Baus :-
                       
                      ‘Public  relation  is  a  combination  of  philosophy,  sociology,  economics,  language,  psychology,  journalism,  communication  and  other  knowledge  into  a  system  of  human  understanding.’

4)      Charless  Plackard:-

                          ‘Merely  human  decency  which  flows  from  a  good  heart.’

5)      The  most  widely  accepted  and  popular  definition  of  PR  is  from  the  institute  of  public  relations (IPR),  which  defines  public  relations as, “The planned and sustained effort to establish and maintain goodwill and mutual understanding between an organisation and its publics.

6)      ‘Public  relations  is   a  dynamic  business  communication tool  which can  transform  the  performance  of  any  company,  be  it  a  one-man  band  or  a  multinational.’

7)      Public  Relations  can  be  defined  as, “the  process  of   understanding  public  attitudes  on  relevant  issues,  interpreting  these  attitudes  for  Management,  and  then  working  either  to  align  the  organizational  polices   and  practices  with  those  attitudes  or  to  modify  the  attitudes  themselves.”

8)      Public relations (PR) is a profession with varying definitions because of its many functions and the differentiating perceptions held by its practitioners and the public. 

9)      “Public  relation  is  good  work  properly publicizes  and  adequately  acknowledged  by  the  people.” 

10)   Communication by a person or an organization with the purpose of creating a favorable public image; commonly referred to as PR.

11)   may consist of a variety of activities engaged in by organizations or celebrities that are intended to promote a positive relationship or image with their customers and prospective customers (members of the public). 

12)   Communications often in the form of news distributed in a non-personal form which may include newspaper, magazine, radio, television, Internet or other form of media for which the sponsoring organization does not pay a fee.

13)   According to the Chartered Institute of Public Relations (CIPR), public relations is about reputation – the result of what you do, what you say and what others say about you.

14)   Any activities or events that help promote a favorable relationship between a company and its customers and prospects; activities used to influence the press to print stories that promote a favorable image of a company and its products or services.

15)   Public relations has been described as building goodwill with a company's various publics, including consumers, employees, government officials, stockholders, and suppliers.


16)   Public relations includes ongoing activities to ensure the overall company has a strong public image. Public relations activities include helping the public to understand the company and its products. Often, public relations are conducted through the media, that is, newspapers, television, magazines, etc. As noted above, public relations is often considered as one of the primary activities included in promotions.

17)   PUBLIC RELATIONS is a form of communication primarily directed toward gaining public understanding and acceptance. Public relations usually deals with issues rather than products or services, and is used to build goodwill with public or employeess. Examples of public relations are employee training, support of charitable events, or a news release about some positive community participation. 

18)   Public relations (PR) is the practice of conveying messages to the public through the media on behalf of a client, with the intention of changing the public's actions by influencing their opinions. PR practitioners usually target only certain segments of the public ("audiences"), since similar opinions tend to be shared by a group of people rather than an entire society. However, by targeting different audiences with different messages to achieve an overall goal, PR practitioners can achieve widespread opinion and behavior change.

CONCLUSION

      Public  Relation  function  deals  with  the  public  opinion  and  informs  the  firm  about  the  same.  It  also  tells  the  public  about  the  results  and  plans  and  policies  of  the  firm.  It  helps  the  firm  in  coordinating  its  activities  to  keep  in  tune  with  public  likes and  dislikes.  It  can  help  the  firm  in  moulding   public  opinion  in  its  favour.  PR  is  used  to  help  in  selling  the  products  as  also  in  managing  crisis  situations.

BIBLIOGRAPHY

1)      Advertising  Frank  jefkins   Revised
         by  Daniel  yadin 

2)      Salesmanship  and  publicity
       - Rustam  davar 
       - Sohrab  R.  davar
       - Nusli  R.  Davar 

3)      Marketing   management – cases  and  concepts
       - Nikhilesh  dholakia
       - Ramesh  Khurana
       - Lapdhi  Bhandariya 
       - Abhinandan  K.  Jain
        published  by  Rajiv  dairy

4)      Principles of marketing
           -Philip kotler
           - Gary Armstrong 
        Prentice hall of India private limited, New Delhi.
5)      Marketing management         
               -S.A . Sherlekar
        Publish by Himalaya publishing house  


PRICE AS A PART OF MARKETING MIX




PRICE AS A PART OF MARKETING MIX

BY

SMART LEARNING WAY

CONTENTS                                                                                                                                                                       
  1. Introduction
  2. Definition of marketing management
  3. Definition of pricing
  4. Pricing objectives
  5. Benefits and price
  6. Bases of pricing
  7. Conclusion
  8. Bibliography

INTRODUCTION

Marketing is the delivery of customer satisfaction at a profit. The twofold goal of marketing is to attract new customer by promising superior value and to keep current customers by delivering satisfaction. Sound marketing is critical to success of any organization-large or small, for-profit or non profit, domestic or global. 

Large for profit firms such as McDonald's, Sony FedEx, wall-mart and marriott use marketing; but so do nonprofit organization such as colleges, hospitals, museums, symphonies, and even churches.        
   
Even in eastern Europe and other parts of the world in which marketing has long had a bad name, dramatic political and social changes have created new opportunities for marketing Business and government leaders in most of these nation are eager to learn everything they can about modern marketing practices. 

We begin by defining marketing and its core concept, describing the major philosophies of marketing thinking and discussing some of major new challenges that marketers now face.

DEFINITION OF MARKETING MANAGEMENT

‘’Marketing, more than any other business function, deals with customers. Creating customers value and satisfaction are the heart of modern marketing thinking and practice’’. 

‘’Marketing is the delivery of customer satisfaction at a profit. The twofold goal of marketing is to attract new customer by promising superior value and to keep current customers by delivering satisfaction’’.  

 ‘’Marketing as a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others’’.

‘’Marketing is the process of planning and executing the conception pricing, promotion and distribution and ideas goods  services to create exchange that satisfy individual and organizational goals’’.

DEFINITION OF PRICING 

1. For many product, the buyer is interested  not only in the physical entity called the product but also in a host peripheral elements. The buyer is interested in the ‘price’ of the whole ‘package’ consisting  of the physical product accessories, after-sales  service, replacement parts, trade-in privileges, and technical guidance.

2.  Prices sometimes vary by the type of customers. Wholesalers pay a lower price than retailers who in turn pay somewhat less than ultimate consumers. Bulk buyers often get discounts. A buyer is interested  in knowing which price he would end up paying: list price, retail price, wholesale price ex- factory price, etc..

3.Price can vary depending on whether it is delivered price or price at the originating point.

4.The buyer would view a price quite differently on when it is to be paid. The amount of credit, the repayment schedule, and the interest rates influence the buyer’s perception of price.

PRICING OBJECTIVES 

These should be derived form an organization’s overall objectives. These are essentially some tasks to be achieved. Quite often a product has a multiple number of pricing objectives, with some implicit understanding of priorities. Generally they provide guidelines to the operating manager. The probable pricing objectives are to:  
 
1.Earn a certain return on investment in the subsequent period
2.Achieve a certain amount of market share in the foreseeable
3.Attain a certain amount of growth in sales
4.Stabilize the market ,i.e. to restore order in a fluctuating market
5. Undermine the efforts of new entrants to gain footholds
6. Prevent competitors from entering into one ‘s territories
7.Make competitors accept one as the price leader
8. Avoid government investigation and control
9. Maintain the loyalty of middlemen and  get their sales support
10. Augment the sale of weak items in the product line
11. Enhance the image of one’s product and firm
12.Recover the investment made within a set period of time; and
13. To set the price at a level that will maintain the employment level. 

BENEFITS AND PRICE  

                     Throughout  this  book we have suggested that in any purchase decision the customer is seeking to acquire benefits. A  product must bring with it the promise of performing certain tasks of solving identified  problems or even of providing specific gratifications. Thus the product is not bought for the particular components or materials that go into its manufacture per se, but rather it is bought for what, as an entity, it can do. 

                          The   implication  of  the benefits  concept form a pricing point of view is that the company must first identify the benefits the customer perceives the product to offer and then attempt to ascertain the value that the customer places upon them. The key issue here is that it is the customer perception that is important. It may be for example that two competing companies offer product that are technically identical to all intents and purposes and yet one company can command a premium price. Why should this be?  

                      It may be that additional benefits offered by one company in the way of technical advice or after sales service are perceived to be superior to those offered by another. Or it may just be that the image of that company is seen as superior. Whatever the reason there are many cases of this type of differential advantage that cannot be explained simply in technical or quality terms. 

                     strong brands have always been able to command a price premium designer labels on fashion garments or obvious examples of the impact of brand image. Even in industrial markets the power of the brand can be significant.              
                           
                       Another way to look at this price advantage is to think of the maximum price at which the product could be  sold as being the sum of two elements. First there is the commodity price element which is the base price for the generic product this can be determined by supply and demand in the market place. On top of this should be added the premium price differential which reflects the totality of the customer perceives will be acquired through purchase of that product. 

                           The existence of this premium price differential can only be explained in terms of perceived benefits. The task of the pricing decision maker therefore, becomes one of identifying these benefits and placing a customer value upon them.  

                          It is in reality a ‘bundle’ of  benefits and so the first step in this suggested  approach to pricing is to ‘unbundle’ the product and identity the individual benefits components that together constitute the totality. the challenge to the pricing decision –maker is to shift the emphasis away from price towards a  wider concept of the total cost of ownership.   

                        This idea is based upon the fact that with many product, the customer will incur many costs other than the initial price over the lifetime of the product. Thus in buying a motor car there are  significant costs other than the initial price over the lifetime of the product. Thus in buying a motor car  there are significant cost beyond the ‘sticker price’ such as running cost, insurance, service and depreciation. 

                                    The Korean car manufacturer Daewoo has achieved considerable success  in  its European marketing campaign by highlighting the true cost of ownership of its model as compared to competitors  models,  for example.     


  • Bases of pricing 
  • Need based pricing
  • Cost based pricing
  • Market- based pricing   

Need based pricing 

1.  Ability to pay
2.Comparative reasonable price
3.  Pricing by norm 
4.  Poorest can afford

1. Ability to pay:  

                         the price may be determined according to the ability of the consumer to pay. This method of pricing is used in the pricing of state health service, some of  the schooling service, housing provided by government or public sector companies, etc..

2. Comparative reasonable price:

                              In some cases, price Is determined by using a comparative and reasonable ‘open market’ price as reference.

3. Pricing by norm:

                             A norm may be developed. For example food in an institutional cafeteria may be priced on the basis of a paisa per calorie norm.    

4. Poorest can afford: 

                              sometimes pricing  of an essential commodity or service is done on the basis that the poorest section of the society should be able to afford the product. Rationed sugar or grain and controlled cloth are priced based on such consideration. 

Cost based pricing 

                        Cost- based pricing can be done on the basis of full costs or variable cost. Full –cost pricing is simple if costs are known with accuracy and certainty. However, this type of pricing should be used with caution because the demand may not be equal to targeted output. Variable-cost pricing is used in special cases where it is desirable to stimulate demand and generate some contribution towards fixed overheads which are irreducible in the short run.  

                          For example, readymade garments which go out of fashion are often sold at cut prices so as to recover the direct variable costs and may contribute a little to the overheads.

Market based pricing 

                         Any  pricing policy which takes demand factors into consideration and seeks to maximize revenues or profits is called market based pricing is fraught with uncertainties of demand estimation and market response, the problem is often divided into small, structured manageable steps, each of which the executive can hope to tackle with judgment. The following steps may be used:

  1. Selection of target markets for the product under consideration.
  2. Choosing a product image consistent with the product quality and target consumers.
  3. Composing a marketing mix to achieve desired image and position.
  4. Selecting a broad pricing strategy consistent with above steps.
5. Arriving at a specific price which judgmentally  appears to be the profit- maximizing price.

Conclusion 

                            The pricing decision is one of the most important issues to be faced by the marketing Manager. Almost  every market is influenced to some extent or another by the relative price of the products that compete in that market.

                           When customer buy products they are making choices based upon  their perception of the relative value of competing offers. The maximum price at which a product or service  can be sold can be no greater than its perceived value.  

                    In this chapter we have proposed that price should be related to the value of benefits that our product or service delivers. Techniques such as trade off analysis can be utilized to assist in reaching pricing decisions, particularly in the valuation of benefits. 

BIBLIOGRAPHY 

1.    Principle of marketing
         Philip kotler
         Gary Armstrong
     Prentice hall of India private limited, New Delhi

 2.   Marketing management
      Crenifield  school of management

3.  Marketing management  cases and concepts
      Nikhilesh  Dholakia
      Rakesh Khurana
      Labdhi Bhandari
      Abhinandan K JAin
      Macmillan India limited

4. Product management in India
    Ramanuj Majumdar
    prentice hall of India private limited, New Delhi

5. Principles of marketing
    Philip kotler
    Gary Armstrong 
    prentice hall of India private limited, New Delhi