Hello everyone, Reema Sarin | AVP, Marketing & Corporate Communications | AppLabs
The one thing that we will see is a delay in the big outsourcing projects from the financial conglomerates to India, which in turn will hqve its ripple affects on our hiring and the IT industry here.
I also would like to take this opportunity to share an excellent analysis on the recent Wall Street crisis by some professors from the Wharton Business School:
Many news reports about the current global credit crisis and its large, institutional victims have compared it to a hurricane. But several Wharton professors suggest that the better analogy might be an ill-constructed levee, filled to the brim with bad debt and breaching under the pressure of massive over-leveraging.
Despite government rescues of Fannie Mae, Freddie Mac and insurance giant AIG over a 10-day period that may change the world of finance, the flood of bad debt will not subside anytime soon, according to four Wharton professors who took part in a panel this week on the still-unfolding financial crisis. Indeed, Washington Mutual is said to be seeking a buyer after writing down almost $15 billion in assets and watching its market capitalization tumble from $31 billion in October 2007 to just under $3 billion as of September 12, according to a report in the New York Times. Likewise, Wachovia's market cap plunged in the same period, from $98 billion to $31 billion, with the bank writing down nearly $23 billion of assets. Citigroup's corresponding numbers are even more dramatic.
The rescues, bankruptcies and dizzying write-downs signal a reckoning for Wall Street wizards who engineered the credit crisis with opaque securities based on risky subprime home loans and the assumption that housing prices would never decline.
"The market was primed for subprime," said Jeremy Siegel, a professor of finance at Wharton who sat on the panel. The pattern of ever-lowering interest rates, often laid at the feet of Alan Greenspan's Federal Reserve but helped along by international monetary pressures, arose from the tech stock bubble of the late 1990s, Siegel noted. "It made people very hungry for yield. With home prices rising" -- and a cursory look at 75 years of data shows no period when housing prices declined, several panelists pointed out -- "people suddenly thought, 'Well, let's go to the mortgage market.'"
By the time it was evident that things had gone horribly wrong, Siegel added, investment banks "were all masking the decline and didn't want to admit the loss." Siegel was joined on the panel by Wharton finance professors Franklin Allen and Richard Herring, and Joseph Gyourko, chairman of Wharton's real estate department.
Even when the housing bubble started to burst in 2007, some banks figured the values of the housing-related securities were at or near the bottom and continued to hold them. At the same time, the institutions were becoming increasingly leveraged -- with debt-to-equity rates of "20 to 1, 30 to 1, or even 40 to 1," Siegel said. "They double-downed" rather than selling off the risky under-performing loans when they could have.
"The liquidity capacity of these markets was overwhelmed,
It wasn't until this March "that we started to see failures," Allen added. "The Fed probably did the right thing with Bear Stearns [by] playing it safe. What they were worried about was contagion risk." Lehman Brothers, on the other hand, was "allowed" to fail in mid-September because the Fed, which in the meantime had become much more familiar with the investment banks' overall exposure, felt that the contagion risk in this case was too low to warrant intervention.
'A Shotgun Marriage'
As financial institutions failed, were sold or bailed out by the federal government, some of Wall Street's other big names were lining up to learn their fates. Indeed, even as the Wharton panel was meeting, news media announced that American International Group (AIG) was thrown an unprecedented $85 billion lifeline by the Federal Reserve in exchange for 80% of the company's assets.
This occurred just days after Lehman declared bankruptcy and Merrill Lynch was sold to Bank of America to prevent the same fate. It followed an earlier move by the government to take control of the federally chartered mortgage firms Fannie Mae and Freddie Mac, and it came just months after Bear Stearns was forced into what Herring called "a shotgun marriage" with JP Morgan Chase.
That deal, brokered in another hastily arranged weekend series of emergency sessions, "put $29 billion of taxpayer money at risk in a very un-transparent way," Herring said. The federal government "made this incredible break with its past," and did so using the kind of special purpose entity that brought down firms like Enron and WorldCom earlier in the decade. It may have stabilized markets in the short run, he said, but in effect, it created yet more of a "moral hazard." In Lehman's case, he noted, "The moral hazard was that Lehman didn't fully believe the government would let them go [into bankruptcy], and they had good reason to not believe it."
In the months between Bear Stearns' fire sale and Lehman's bankruptcy, the panelists agreed it had become clear that the major investment banks were massively overleveraged -- laden with bad debt via convoluted products that allowed for increased securitizations and dangerous off-balance-
Some firms hedged the risks inherent in such trading, even while swimming in the same waters as those that drowned. Goldman Sachs, for instance, is still standing because it had one division that shorted the market for securitized mortgage bonds, specifically to offset the other Goldman Sachs divisions that bought them, Siegel said.
Still, Siegel sees a silver lining. "There's about a half trillion dollars' worth of write-downs already embedded in the prices of these financial stocks," which suggests that financial firms overall are finally being forced to come clean about investments. "We're seeing a changing of the players," he added. "There is still a huge demand for financial services. That demand is going to grow, and international flows of credit are going to be bigger than ever.... We are now making transparent what these instruments are worth."
Putting off the Debacle
Siegel's comment echoed his opinion piece in the Wall Street Journal the morning of the panel. In acknowledging the turmoil caused by the overleveraging, he noted: "There is good evidence that the worst is over, especially for the commercial banks with access to Federal Reserve credit."
Gyourko sees it differently. "There are emerging problems on the commercial side [of the real estate market]," he said. After the session, Gyourko shook his head at what he feels is a downward spiraling securities market for commercial real estate. "There are going to be so many banks going under," he stated. "If I could re-invent myself, I'd be a distressed property fund. You simply can't get debt in this market."
According to Gyourko, stock prices for real estate investment trusts are suffering, too. But his fears for the CMBS market are well-grounded. AIG, for example, could be forced to sell off assets at a time when CMBS demand is practically non-existent. The insurer owns in excess of $21 billion of CMBS.
As for the residential side, he noted that the excess supply of new homes continued throughout 2007. "The excess supply will wear off by the end of 2009, but not before.... The end of this debacle keeps getting put off and put off."
Certain markets hardest hit by subprime loan proliferation, such as Las Vegas, Nev., Phoenix, Ariz., and Miami, Fla., which have seen "unprecedented price drops ... will grow their way out of it, but it is not a 2009 solution," Gyourko noted. Not so well reported are the default rates of the prime mortgage market. People "who played by the rules, who paid 20% or 10% down on their homes, are losing value and are saying, 'Do I want to really pay this?' And that is really scaring people."
There is plenty of blame -- and plenty of worry -- to go around. "I think the real risk is overseas, particularly in Europe," said Allen. He foresees potentially enormous problems with "big banks in small countries," such as Belgium and the Netherlands. "Fortis [Bank] will come under scrutiny in the next few weeks," he noted, referring to a Belgian-Dutch bank which saw profits for the first half of 2008 fall by 41% compared to the same period of 2007, according to a recent report from the BBC. The performance was blamed on the crashing global credit markets and the bank's own bad loans.
That might turn out to be a blip if things turn sour for Switzerland'
Regards,
Reema
Plot # 83 & 84, Road # 2, Banjara Hills, Hyderabad - 500 034
Office: +91 40 2355 8000 | Mobile: +91 9849647772 | Fax: +91 40 2355 8111
reema.sarin@
no doubt about it
To: prpoint@yahoogroups
From: yasarabrar@gmail.
Date: Thu, 18 Sep 2008 12:03:19 +0530
Subject: [prpoint] Financial crisis at USA - How it will have an impact in India?
Messages In This Digest (12 Messages)
Messages
Financial crisis at USA - How it will have an impact in India?
Posted by: "Prime Point Srinivasan" prpoint@gmail.
Tue Sep 16, 2008 8:51 am (PDT)
I would like the members to share their views as to how the recent financial
crisis in USA will have its impact in India in the following areas :
1. financial sector
2. employment opportunity
3. Real Estate
4. PR, Communication and Marketing
Srinivasan
Moderator
94440 50273
Re: Financial crisis at USA - How it will have an impact in India?
Posted by: "BNK" mailbnk@gmail.
Tue Sep 16, 2008 9:12 pm (PDT)
why I threw up a topic for discussion - Crisis Communication *- woh kya
hai!.* You had the sub prime crisis. Then India had crisis after crisis -
from inflation to 123 agreement. PR did play a major role during these
crisis. *PR hai toh sab kuch hai!*
bnk
On 16/09/2008, Prime Point Srinivasan <prpoint@gmail.
>
> dear friends
>
> I would like the members to share their views as to how the recent
> financial crisis in USA will have its impact in India in the following areas
> :
>
> 1. financial sector
> 2. employment opportunity
> 3. Real Estate
> 4. PR, Communication and Marketing
>
> Srinivasan
> Moderator
> 94440 50273
>
>
>
>
>
>
--
Regards
BNK
Call: CDMA: 93210 48332
93200 48332
========
B N Kumar
President
Concept PR - "Agency of the Year" award winner from PR Council of India
============
Re: Financial crisis at USA - How it will have an impact in India?
Posted by: "K. Srinivasan" prpoint@gmail.
Wed Sep 17, 2008 12:10 am (PDT)
Since the US Financial crisis is also likely to have an impact on our
Indian economy and system, I request the members to confine to the
issues listed out in the earlier message.
Kindly share your views on the four points raised by me.
srinivasan
Moderator
>
> On 16/09/2008, Prime Point Srinivasan <prpoint@...> wrote:
> >
> > dear friends
> >
> > I would like the members to share their views as to how the recent
> > financial crisis in USA will have its impact in India in the
following areas
> > :
> >
> > 1. financial sector
> > 2. employment opportunity
> > 3. Real Estate
> > 4. PR, Communication and Marketing
> >
> > Srinivasan
> > Moderator
> > 94440 50273
Re: Financial crisis at USA - How it will have an impact in India?
Posted by: "Tushar Jambhekar" tujams@yahoo.
Wed Sep 17, 2008 2:11 am (PDT)
Dear Professionals,
If we take into considerations the Financial Crisis in US, the Financial markets are heavily depedent on FII's. The collapse of someone like Lehman Brothers does have a significant impact on the markets considering it was the 4th largest institutional investor.
Infact it puts a big question mark on how much to trust financial results and books after all the rugulations and mandatory declaration that we saw come in Post-Enron.
How it affects the job markets, well, how does the scenario become in the lucrative Financial setor now having high ranking, highly paid, experienced professionals hunting down every available job oppertunity? The more alert ones like a friend of mine decided to start the process about a month ago and today stands to move into a company which is infact offering a lower than at par renumeration.
As a matter of fact, we all are under the perception that BPO's, a sectro booming on the US economy is still unaffected by the sloow down in US. The reality is however, even some of the top BPO's are showing Book Profits while the cash flows have taken a dip.
The Real Estate market in India.... it always seemed as a bubble blown out of proportions to keep up to its boom in Infrastructure Sector. A growth in infrastructure projects like Roads, Power plants, Airports cannot be treated as Real Estate. Not wvwn all malls are successful. So even though building houses will never seize, the prives will fall for sure.
As for PR and Marketing Industry in India, I feel people would not like to take all that comes across in Business papres and magazinges as a validated source. Initiative will have to be more concrete and involving for investors and share holders as there might be much more hidden than what is revealed to public. In times of volatility and uncertainty, its gonna be more of factual information that can hold the people rather than perceptual images that might be built.
Regards.
Tushar Jambhekar
Senior Client Executive
Perspectrum Consultancy
----- Original Message ----
From: Prime Point Srinivasan <prpoint@gmail.
To: Prpoint Group <prpoint@yahoogroups
Sent: Tuesday, September 16, 2008 9:20:12 PM
Subject: [prpoint] Financial crisis at USA - How it will have an impact in India?
dear friends
I would like the members to share their views as to how the recent financial crisis in USA will have its impact in India in the following areas :
1. financial sector
2. employment opportunity
3. Real Estate
4. PR, Communication and Marketing
Srinivasan
Moderator
94440 50273
Re: Financial crisis at USA - How it will have an impact in India?
Posted by: "Prime Point Srinivasan" prpoint@gmail.
Wed Sep 17, 2008 3:57 am (PDT)
http://www.siliconi
Welcome comments.
Srinivasan
Top IT firms bracing for huge lay-offs
Date: Wednesday, September 17, 2008
Bangalore: If market guestimates are anything to go by, the latest
happenings in the global financial markets can result in the loss of as many
as 20,000 to 25,000 jobs in India. That means, the likes of Cognizant, TCS,
Infosys, HCL, Wipro and Satyam will announce huge lay-offs over the next
couple of quarters, The Times of India reported.
As the banking, financial services and insurance (BFSI) segment is the
largest outsourcing vertical for Indian technology players, the space
contributes up to 40 percent of the revenues for some top IT firms.
The IT industry employs around 350,000 people in the BFSI space of which the
top six players alone account for 180,000 jobs, with the domain accounting
for $10 billion of the total $32 billion revenues the industry posted during
the last fiscal.
Now with the crisis in Wall Street, one could see a somber picture of the
things to come.
"The mid-year appraisal expected in October-November will be extremely
crucial. Many companies may announce large-scale job cuts," said an HR
professional at a leading IT firm, on a request of anonymity.
"Many companies have already asked recruitment firms to stop hiring in the
last 24 hours" says Rajiv Mehrotra, country GM of hiring firm Kelly Services
India.
Avinash Vashistha, Managing Director of offshore investment advisory firm
Tholons, says, "Tech providers have been witnessing a sluggish growth in the
BFSI vertical in the last 12 months. The impact is big as the space has been
the pioneer and largest adopter of technology."
According to Naresh Malhan, MD of talent management firm Manpower India, if
the situation prolongs for six to nine months, other verticals also will
begin to be hit. Even the manufacturing sector will feel the pinch.
The direct effect of the demise of Lehman Brothers and Merrill Lynch is
already being felt in the Indian job market. The nearly 2,500 employees of
Lehman Brothers' captives in Mumbai have been asked to look out for jobs. A
firm that supplied temporary staff to the Mumbai office of Lehman said it
had laid off 150 of their people.
On Wed, Sep 17, 2008 at 2:28 PM, Tushar Jambhekar <tujams@yahoo.
>
>
> Dear Professionals,
>
> If we take into considerations the Financial Crisis in US, the Financial
> markets are heavily depedent on FII's. The collapse of someone like Lehman
> Brothers does have a significant impact on the markets considering it was
> the 4th largest institutional investor.
>
> Infact it puts a big question mark on how much to trust financial results
> and books after all the rugulations and mandatory declaration that we saw
> come in Post-Enron.
>
> How it affects the job markets, well, how does the scenario become in the
> lucrative Financial setor now having high ranking, highly paid, experienced
> professionals hunting down every available job oppertunity? The more alert
> ones like a friend of mine decided to start the process about a month ago
> and today stands to move into a company which is infact offering a lower
> than at par renumeration.
> As a matter of fact, we all are under the perception that BPO's, a sectro
> booming on the US economy is still unaffected by the sloow down in US. The
> reality is however, even some of the top BPO's are showing Book Profits
> while the cash flows have taken a dip.
>
> The Real Estate market in India.... it always seemed as a bubble blown out
> of proportions to keep up to its boom in Infrastructure Sector. A growth in
> infrastructure projects like Roads, Power plants, Airports cannot be treated
> as Real Estate. Not wvwn all malls are successful. So even though building
> houses will never seize, the prives will fall for sure.
>
> As for PR and Marketing Industry in India, I feel people would not like to
> take all that comes across in Business papres and magazinges as a validated
> source. Initiative will have to be more concrete and involving for investors
> and share holders as there might be much more hidden than what is revealed
> to public. In times of volatility and uncertainty, its gonna be more of
> factual information that can hold the people rather than perceptual images
> that might be built.
>
> Regards.
>
> Tushar Jambhekar
> Senior Client Executive
> Perspectrum Consultancy
>
>
> ----- Original Message ----
> From: Prime Point Srinivasan <prpoint@gmail.
> To: Prpoint Group <prpoint@yahoogroups
> Sent: Tuesday, September 16, 2008 9:20:12 PM
> Subject: [prpoint] Financial crisis at USA - How it will have an impact in
> India?
>
> dear friends
>
> I would like the members to share their views as to how the recent
> financial crisis in USA will have its impact in India in the following areas
> :
>
> 1. financial sector
> 2. employment opportunity
> 3. Real Estate
> 4. PR, Communication and Marketing
>
> Srinivasan
> Moderator
> 94440 50273
>
>
>
>
>
Crisis communications - woh kya hai?
Posted by: "BNK" mailbnk@gmail.
Tue Sep 16, 2008 9:12 pm (PDT)
PR or for a temporary arrangement to communicate or block communication.
Isn't this the time to ponder over: Do we need PR only during crisis? Lehman
is only a small example. There was an ICICI Bank which had face the brunt of
miscommunication generated by a stupid rumour. Much before that we had
Bhopal tragedy. Now you have a Shivraj Patil tragedy (or comedy) of errors!!
How do we, the PR professionals, tackle such crisis? Or how best best can we
help our businesses to be ready to face the crisis?
I would like to throw this topic for your opinion -* What's this crisis
communication all about?
*--
Regards
BNK
Call: CDMA: 93210 48332
93200 48332
========
B N Kumar
President
Concept PR - "Agency of the Year" award winner from PR Council of India
============
Re: Crisis communications - woh kya hai?
Posted by: "Richa Gupta" richagupta87@
Tue Sep 16, 2008 10:25 pm (PDT)
And what with so many dynamics taking place around us, its become imperative
that one will have to deal with a crisis situation.
To tackle such a situation does not mean that we deal with it when it takes
place. It means that as a PR professional, one must anticipate that such a
situation is possible and thereby be prepared to tackle it when it takes
place. Thus, there must be a PLAN A and a PLAN B and even a PLAN C if its
necessary.
This is also where we communicate the need of PR to a business and tell them
how PR is important before a crisis to avoid one.
Richa Gupta
Snr. Media Trainee,
Symbiosis Institute of Media and Communication,
Pune.
+919323936727
On Wed, Sep 17, 2008 at 2:07 AM, BNK <mailbnk@gmail.
> Now that there is a crisis situation everywhere, many must be scouting
> for PR or for a temporary arrangement to communicate or block communication.
> Isn't this the time to ponder over: Do we need PR only during crisis? Lehman
> is only a small example. There was an ICICI Bank which had face the brunt of
> miscommunication generated by a stupid rumour. Much before that we had
> Bhopal tragedy. Now you have a Shivraj Patil tragedy (or comedy) of errors!!
> How do we, the PR professionals, tackle such crisis? Or how best best can
> we help our businesses to be ready to face the crisis?
>
> I would like to throw this topic for your opinion -* What's this crisis
> communication all about?
>
> *--
> Regards
> BNK
> Call: CDMA: 93210 48332
> 93200 48332
>
> ========
> B N Kumar
> President
> Concept PR - "Agency of the Year" award winner from PR Council of India
> ============
>
>
>
Re: Crisis communications - woh kya hai?
Posted by: "Warrier, Gopikrishna (ICRISAT-IN)
Tue Sep 16, 2008 11:57 pm (PDT)
During a crisis all these rules are rewritten. In fact there are no rules during a crisis. With our proactive action we can create a semblance of order during a crisis situation. And, that is the time when we can cash in on the goodwill we have created through our sincerity in the past. In media relations, as in all other professions, there is no substitute for hard, sincere and systematic work.
If a crisis is not properly handled in the beginning, then all kinds of irrelevant issues can be brought into the discussions by the journalists. For instance, an upmarket school in the city had a case of children falling ill after eating breakfast. Instead of talking with journalists who reported this story, the management confronted the journalists and the newspaper managements. The result - a whole series of new stories appeared, and many issues totally unconnected with the issue at hand appeared.
Step one during a crisis is to open a communication channel with the journalists and give as much information as possible within the given circumnstances. The serious and sincere journalists will appreciate your efforts to communicate. Though they will still criticise you, the chances that it will be fair criticism. And in our line of work we should be prepared to take fair criticism.
Crises are also periods where the trust and relationship built over the years can come in to help. If there are reporters who have systematically covered your organization during fair weather, they may help you during troubled times to communicate facts. You can't expect any journalist to take your position, but even if they communicate facts to the peers it will make a difference.
The point is, the moment there is a crisis the journalists are going to view me as a person representing an interest. True, But if I can tell a rookee journalist that he can cross-check the following facts from Reporter X who has covered my organization for years. Reporter X has greater professional and peer credibility at that point of time.
Warm regards,
Gopi Warrier
(Lead Media Officer - ICRISAT)
************
Now that there is a crisis situation everywhere, many must be scouting for PR or for a temporary arrangement to communicate or block communication. Isn't this the time to ponder over: Do we need PR only during crisis? Lehman is only a small example. There was an ICICI Bank which had face the brunt of miscommunication generated by a stupid rumour. Much before that we had Bhopal tragedy. Now you have a Shivraj Patil tragedy (or comedy) of errors!!
How do we, the PR professionals, tackle such crisis? Or how best best can we help our businesses to be ready to face the crisis?
I would like to throw this topic for your opinion - What's this crisis communication all about?
--
Regards
BNK
Call: CDMA: 93210 48332
93200 48332
========
B N Kumar
President
Concept PR - "Agency of the Year" award winner from PR Council of India
============
FW: [prpoint] Crisis communications - woh kya hai?
Posted by: "Praveen Kumar" Praveen@jspl.
Tue Sep 16, 2008 10:26 pm (PDT)
It is a high time to realize the impact of the profession and its
positive and negative impact on a society at large. The general idea
which is emerging out today that pr professionals are serving their news
with un-proportional blow of the real facts and without understanding
the facts in detail ,the recent example is scientific test at Geneva and
creating negative atmosphere against the science and its development and
nullifying the importance of the research ultimately restricting the
young generation to pursue the career in science . There are thousands
of example before us.
Once I was reading a presentation of Dr. A.P.J.KALAM wherein he has
cited the example of positivity of journalism in ISRIEL and has said
that even during the crisis of war the head lines and the main coverage
was full of positive news related to development initiative and projects
undertaken for the welfare of the societies at large. They do cover the
news of scam ,loot and chori but that does not become the headlines. As
everyone starts his day by getting your news and that plays a role in
creating a positive and negative frame of mind.
It is a high time for us to decide to use our profession in making a
positive impact on society to move forward for accomplishing the vision
ahead and giving a moral boost to the development of the country. you
will agree with me that most of the head lines is negative of any
initiative taken , for example we never bothered to find out the impact
of mid-day meal in schools in bringing people to the schools and
increasing the literacy rate rather most of the time we see the news
related to the bad food and its consequences , I agree that being a
forth pillar of democracy we need to be vigilant and keep highlighting
the failures and weaknesses of the programme and suggestion also to
fight with the fallacies so on and so forth.
Regards
Praveen kumar
____________
From: prpoint@yahoogroups
Of BNK
Sent: 17 September, 2008 2:07 AM
To: Prpoint Group
Subject: [prpoint] Crisis communications - woh kya hai?
Now that there is a crisis situation everywhere, many must be scouting
for PR or for a temporary arrangement to communicate or block
communication. Isn't this the time to ponder over: Do we need PR only
during crisis? Lehman is only a small example. There was an ICICI Bank
which had face the brunt of miscommunication generated by a stupid
rumour. Much before that we had Bhopal tragedy. Now you have a Shivraj
Patil tragedy (or comedy) of errors!!
How do we, the PR professionals, tackle such crisis? Or how best best
can we help our businesses to be ready to face the crisis?
I would like to throw this topic for your opinion - What's this crisis
communication all about?
--
Regards
BNK
Call: CDMA: 93210 48332
93200 48332
========
B N Kumar
President
Concept PR - "Agency of the Year" award winner from PR Council of India
============
Re: Agency charges - column per centimitre
Posted by: "Yasar Arafath" yasarabrar@gmail.
Wed Sep 17, 2008 2:15 am (PDT)
I feel that the agency should not charge col/cm or sq/cm format at all. PR
is profession were you cannot calculate the exact reach or advantage of
one's work so easily based on your coverages.
As their are lot of factor involved in even *releasing a press note or
arranging for press conference or an interaction itself. *Which will not
taken into consideration through this new way of compensation.
Basically charges like col/cm or sq/cm will calculate based only on size of
the coverage, will not take into consideration the impact or visibility one
coverage generate for the client. Their is no fool proof methodology to
calculate the same also. Instead of some new compensation technique, PR
companies can follow the traditional way of contract and compensation.
Additionally they can add a clause for more compensation for best performers
(ie, the PR company will be compensated more, if the PR value or ad value is
more than X rupees.)
On Tue, Sep 16, 2008 at 8:51 PM, <prpoint@yahoogroups
> Indian Public Relations professionals
> <http://groups.
> Messages In This Digest (5 Messages) 1a. Agency charges - column per
> centimitre<http://mail.
> Re: Agency charges - column per centimitre<http://mail.
> Re: Agency charges - column per centimitre<http://mail.
> Re: Agency charges - column per centimitre<http://mail.
> PR Icons - Jhon Arokiasamy - Corpcom to PR Agency<http://mail.
> View All Topics<http://groups.
> New Topic<http://groups.
> Messages 1a. Agency charges - column per centimitre
> <http://groups.
> by: "Abhinav Sood" abhinav.sood@
> <abhinav.sood@
> abhinavsood74 <http://profiles.
> 11:41 pm (PDT) Hi
>
> I recently have come across large PR Agency contracts charging clients
> column per centimetre for articles / clips.
>
> Isn't that misinformation on the part of the agency specially when even the
> journalist does not know the final outcome. Shouldn't we as agencies do some
> coordinated PR for Public Relations ensuring that articles describing PR
> appear.
>
> Regards
>
> Abhinav Sood
>
> Partner
>
> ConnectComm
>
> Ph : +91 98106 05190
>
> E Mail : <mailto:abhinav.sood@
> abhinav.sood@
>
> Back to top
> <http://mail.
> Reply to sender
> <abhinav.sood@
> Reply to group
> <prpoint@yahoogroups
> Reply via web post
> <http://groups.
> Messages in this topic
> <http://groups.
>
> 1b. Re: Agency charges - column per centimitre
> <http://groups.
> by: "Karthikk Chellappa" karthikk.chellappa@
> <karthikk.chellappa@
> karthikk.chellappa <http://profiles.
> Sep 16, 2008 1:21 am (PDT) This is absolutely crazy to say the least.
>
> Regards
>
> Karthikk
>
> 2008/9/16 Abhinav Sood <abhinav.sood@
> >
>
> > Hi
> >
> >
> >
> > I recently have come across large PR Agency contracts charging clients
> > column per centimetre for articles / clips.
> >
> >
> >
> > Isn't that misinformation on the part of the agency specially when even
> > the journalist does not know the final outcome. Shouldn't we as agencies
> do
> > some coordinated PR for Public Relations ensuring that articles
> describing
> > PR appear.
> >
> >
> >
> > Regards
> >
> >
> >
> > Abhinav Sood
> >
> > Partner
> >
> > ConnectComm
> >
> > Ph : +91 98106 05190
> >
> > E Mail : abhinav.sood@
> >
> >
> >
> >
>
> --
> Thanks and Regards
>
> Karthikk Chellappa
> 09392518881
> Back to top
> <http://mail.
> Reply to sender
> <karthikk.chellappa@
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> <http://groups.
>
> 1c. Re: Agency charges - column per centimitre
> <http://groups.
> by: "V Jagannathan" v_jagannathan@
> <v_jagannathan@
> v_jagannathan <http://profiles.
> 4:38 am (PDT) If column centimetre can be being used to measure the
> effectiveness of a PR activity why not use the same metric for the fees as
> well?
>
> Interestingly while the PR industry claims that it is more than
> advertising, they use the advt. industry metrics for their revenue.
>
> Having said that the question is will such a strategy be counter productive
> in the long run? Once a journalist knows that the agency's revenue is linked
> to the length of his story will he not limit his story length rather than
> going by the story's weightage?
>
> V.Jagannathan
>
> --- On Tue, 9/16/08, Karthikk Chellappa <karthikk.chellappa@
> wrote:
>
> From: Karthikk Chellappa <karthikk.chellappa@
> >
> Subject: Re: [prpoint] Agency charges - column per centimitre
> To: prpoint@yahoogroups
> Cc: image_management@
> Date: Tuesday, September 16, 2008, 1:30 PM
>
> This is absolutely crazy to say the least.
>
> Regards
>
> Karthikk
>
> 2008/9/16 Abhinav Sood <abhinav.sood@ connectcomm. org>
>
> Hi
>
> I recently have come across large PR Agency contracts charging clients
> column per centimetre for articles / clips.
>
> Isn't that misinformation on the part of the agency specially when even
> the journalist does not know the final outcome. Shouldn't we as agencies do
> some coordinated PR for Public Relations ensuring that articles describing
> PR appear.
>
> Regards
>
> Abhinav Sood
> Partner
> ConnectComm
> Ph : +91 98106 05190
> E Mail : abhinav.sood@ connectcomm. org
>
>
> --
> Thanks and Regards
>
> Karthikk Chellappa
> 09392518881
>
>
> Back to top
> <http://mail.
> Reply to sender
> <v_jagannathan@
> Reply to group
> <prpoint@yahoogroups
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> <http://groups.
> Messages in this topic
> <http://groups.
>
> 1d. Re: Agency charges - column per centimitre
> <http://groups.
> by: "BNK" mailbnk@gmail.
> <mailbnk@gmail.
> Sep 16, 2008 7:10 am (PDT) This crazy system of charging takes the media
> valuation process too far!
> Some agencies and PR professionals have devised the col cm formula only
> project perceived value of the PR coverage since many money minded clients
> have started asking "what's the value that we got'.
> But if a client is willingly paying by col cm, good luck to that agency!!
> Also, there are still some newspapers who pay their stringers by col cm
> rather than giving them fixed compensation. For instance, I once was
> offered
> this kind of payment by a leading newspaper. I rejected it outright and
> told
> the editor: Pl keep it for your pocket money.
> Regards
> bnk
>
> On 16/09/2008, Abhinav Sood <abhinav.sood@
> wrote:
> >
> > Hi
> >
> >
> >
> > I recently have come across large PR Agency contracts charging clients
> > column per centimetre for articles / clips.
> >
> >
> >
> > Isn't that misinformation on the part of the agency specially when even
> > the journalist does not know the final outcome. Shouldn't we as agencies
> do
> > some coordinated PR for Public Relations ensuring that articles
> describing
> > PR appear.
> >
> >
> >
> > Regards
> >
> >
> >
> > Abhinav Sood
> >
> > Partner
> >
> > ConnectComm
> >
> > Ph : +91 98106 05190
> >
> > E Mail : abhinav.sood@
> >
> >
> >
> >
> >
>
> --
> Regards
> BNK
> Call: CDMA: 93210 48332
> 93200 48332
>
> ========
> B N Kumar
> President
> Concept PR - "Agency of the Year" award winner from PR Council of India
> ============
> Back to top
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> <http://groups.
>
> 2. PR Icons - Jhon Arokiasamy - Corpcom to PR Agency
> <http://groups.
> by: "Prime Point Srinivasan" prpoint@gmail.
> <prpoint@gmail.
> prpoint <http://profiles.
>
> http://pricons.
>
> Whenever any student of PR from the City Colleges approach me for their
> intern, the first name that comes to my mind is always "Jhon Arokiasamy",
> popularly known as Jhon, presently heading the operations of Good Relations
> at Chennai and Hyderabad. He has a passion for teaching and training the
> youngsters. Nearly 20 of his trainees are well placed in the industry
> across
> the country.
>
> Hailing from a middle class family in a remote village of Andhra Pradesh,
> he
> had schooling near Chennai. He was a state level topper in Computer Science
> in Higher Secondary Education. After completing his Post Graduation in
> English Literature, he pursued MBA, specializing in HR and Systems.
>
> His knowledge and skill in Literature and Computer Systems helped him in
> 1998 to start his career as a technical writer and then move on to
> Corporate
> Communication function in a software company.
>
> There is always a trend that people working in the PR Agencies like to
> shift
> to Corpcom jobs at the earliest opportunity. They perceive Corpcom provides
> a better package with less of field work. Jhon, after a stint of three
> years
> in a lucrative corpcom job, preferred to shift to a PR Agency to develop
> his
> strategic and implementation skills.
>
> "As a Corporate Communications professional, I always had a feeling that I
> had no option than just to agree with the CEO on all occasions. That's why
> I
> realized that I should try being an external consultant. I thought working
> with a PR agency of repute would help me to learn more. I joined Perfection
> Relations.", says Jhon proudly.
>
> In these days, when the PR Agencies find it difficult to retain the
> customers for more than six months to one year, he is able to retain his
> customers against all the competition ranging from 2 years to 4 years.
>
> Rashmi Sridharan, (presently a PR executive at Bangalore) who worked with
> him both as an intern and again as an employee for nearly 8 months says, "
> Even as a student, I learnt lot of strategic communication from Jhon. He
> used to explain to us patiently like a teacher. He used to take the juniors
> also for pitching the account and for every meeting. He never promises
> deliverables, which are not feasible. When some of the agencies over
> promise
> the deliverables, he used to maintain the reality. I have found many
> clients
> preferring this type of attitude and coming to us. His ethical approach has
> convinced the clients to stay back for years. They like his simple and
> practical advise, than jargons".
>
> Jhon has been closely involved in advising, devising and implementing
> crisis
> communication strategies and has developed expertise over the years. "It is
> this function which is the most difficult part of the job; It is more
> fulfilling to me when it is achieved", he says with a feeling of
> satisfaction.
>
> He loves reading books on meta-physics and corporate finance. He wants to
> develop lot of young professionals and groom them to suit the needs of the
> industry. He is invited by the various Colleges to interact with students
> on
> PR and also as ane examiner for PR subjects.
>
> He wants to be a good leader. "I want to pass on the credit to my
> colleagues, whenever they achieve something. I do not want to steal their
> achievement. I still remember Mr Divakar, who groomed me to be a good PR
> professional in the earlier Agency. He inspired me to become a good
> leader",
> Jhon says with all humility.
>
> Finally when we asked him what he wanted to be in another five years,
> quickly he replied with confident smile, "I want to become an
> entrepreneur"
> Back to top
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> Reply to sender
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> Reply to group
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--
Regards
Yasar Arafath K. A
9840611339
http://yasararafath
Success is the good fortune that comes from aspiration, desperation,
perspiration and inspiration - Evan Esar
--
Regards
Yasar Arafath K. A
9840611339
http://yasararafath
Success is the good fortune that comes from aspiration, desperation,
perspiration and inspiration - Evan Esar
Re: Agency charges - column per centimitre
Posted by: "Narendran A" naren_vna@yahoo.
Wed Sep 17, 2008 3:38 am (PDT)
When we talk about charges based on col/cm, it is still there in smaller agencuies. Bigger agencies have moved away and charge based on the startegy and volume of work. Many a times it overshoots clients expectation. Some clients settle down for bonus clause and again deliverables are based on the clippings.
Experienced people will measure the PR agency based on the abaility to execute and outcome of any activity and not on clips for sure.
I feel importance should be given to the brain and not to the newspaper clips.
Best regards
Narren
--- On Wed, 9/17/08, Yasar Arafath <yasarabrar@gmail.
From: Yasar Arafath <yasarabrar@gmail.
Subject: [prpoint] Re: Agency charges - column per centimitre
To: prpoint@yahoogroups
Date: Wednesday, September 17, 2008, 2:29 PM
Dear All,
I feel that the agency should not charge col/cm or sq/cm format at all. PR is profession were you cannot calculate the exact reach or advantage of one's work so easily based on your coverages.
As their are lot of factor involved in even releasing a press note or arranging for press conference or an interaction itself. Which will not taken into consideration through this new way of compensation.
Basically charges like col/cm or sq/cm will calculate based only on size of the coverage, will not take into consideration the impact or visibility one coverage generate for the client. Their is no fool proof methodology to calculate the same also. Instead of some new compensation technique, PR companies can follow the traditional way of contract and compensation. Additionally they can add a clause for more compensation for best performers (ie, the PR company will be compensated more, if the PR value or ad value is more than X rupees.)
On Tue, Sep 16, 2008 at 8:51 PM, <prpoint@yahoogroups .com> wrote:
Indian Public Relations professionals
Messages In This Digest (5 Messages)
1a.
Agency charges - column per centimitre From: Abhinav Sood
1b.
Re: Agency charges - column per centimitre From: Karthikk Chellappa
1c.
Re: Agency charges - column per centimitre From: V Jagannathan
1d.
Re: Agency charges - column per centimitre From: BNK
2.
PR Icons - Jhon Arokiasamy - Corpcom to PR Agency From: Prime Point Srinivasan
View All Topics | Create New Topic
Messages
1a.
Agency charges - column per centimitre
Posted by: "Abhinav Sood" abhinav.sood@ connectcomm. org abhinavsood74
Mon Sep 15, 2008 11:41 pm (PDT)
Hi
I recently have come across large PR Agency contracts charging clients column per centimetre for articles / clips.
Isn't that misinformation on the part of the agency specially when even the journalist does not know the final outcome. Shouldn't we as agencies do some coordinated PR for Public Relations ensuring that articles describing PR appear.
Regards
Abhinav Sood
Partner
ConnectComm
Ph : +91 98106 05190
E Mail : <mailto:abhinav.sood@ connectcomm. org> abhinav.sood@ connectcomm. org
Back to top Reply to sender | Reply to group | Reply via web post
Messages in this topic (5)
1b.
Re: Agency charges - column per centimitre
Posted by: "Karthikk Chellappa" karthikk.chellappa@ gmail.com karthikk.chellappa
Tue Sep 16, 2008 1:21 am (PDT)
This is absolutely crazy to say the least.
Regards
Karthikk
2008/9/16 Abhinav Sood <abhinav.sood@ connectcomm. org>
> Hi
>
>
>
> I recently have come across large PR Agency contracts charging clients
> column per centimetre for articles / clips.
>
>
>
> Isn't that misinformation on the part of the agency specially when even
> the journalist does not know the final outcome. Shouldn't we as agencies do
> some coordinated PR for Public Relations ensuring that articles describing
> PR appear.
>
>
>
> Regards
>
>
>
> Abhinav Sood
>
> Partner
>
> ConnectComm
>
> Ph : +91 98106 05190
>
> E Mail : abhinav.sood@ connectcomm. org
>
>
>
>
--
Thanks and Regards
Karthikk Chellappa
09392518881
Back to top Reply to sender | Reply to group | Reply via web post
Messages in this topic (5)
1c.
Re: Agency charges - column per centimitre
Posted by: "V Jagannathan" v_jagannathan@ yahoo.com v_jagannathan
Tue Sep 16, 2008 4:38 am (PDT)
If column centimetre can be being used to measure the effectiveness of a PR activity why not use the same metric for the fees as well?
Interestingly while the PR industry claims that it is more than advertising, they use the advt. industry metrics for their revenue.
Having said that the question is will such a strategy be counter productive in the long run? Once a journalist knows that the agency's revenue is linked to the length of his story will he not limit his story length rather than going by the story's weightage?
V.Jagannathan
--- On Tue, 9/16/08, Karthikk Chellappa <karthikk.chellappa@ gmail.com> wrote:
From: Karthikk Chellappa <karthikk.chellappa@ gmail.com>
Subject: Re: [prpoint] Agency charges - column per centimitre
To: prpoint@yahoogroups .com
Cc: image_management@ yahoogroups. com
Date: Tuesday, September 16, 2008, 1:30 PM
This is absolutely crazy to say the least.
Regards
Karthikk
2008/9/16 Abhinav Sood <abhinav.sood@ connectcomm. org>
Hi
I recently have come across large PR Agency contracts charging clients column per centimetre for articles / clips.
Isn't that misinformation on the part of the agency specially when even the journalist does not know the final outcome. Shouldn't we as agencies do some coordinated PR for Public Relations ensuring that articles describing PR appear.
Regards
Abhinav Sood
Partner
ConnectComm
Ph : +91 98106 05190
E Mail : abhinav.sood@ connectcomm. org
--
Thanks and Regards
Karthikk Chellappa
09392518881
looking for freelance PR professionals at Cochin and Trivendrum
Posted by: "bhaskar_jha2000" bhaskar_jha2000@
Wed Sep 17, 2008 5:26 am (PDT)
(Moderator's Note: Please do not respond to the group. Please respond only to the author of the mail)
We are looking for freelance PR professionals who can work for us in
Cochin and Trivendrum. Anybody interested may please contact me on
bhaskar_jha2000@
Thanks & regards,
Bhaskar Jha
Positive Communications
www.positiveindia.
[Message clipped]
--
Regards
Yasar Arafath K. A
9840611339
http://yasararafath
Success is the good fortune that comes from aspiration, desperation, perspiration and inspiration - Evan Esar
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