The ad which results may please management while failing to address the concerns of the target market. It will then fail to achieve the needed marketing results. Institutional advertising tries to develop goodwill for a company rather than to sell a specific product. Its objective is to improve the advertiser's image, reputation, and relations with the various groups the company deals with. This includes not only end-users and distributors, but also suppliers, shareholders, employees, and the general public.
Institutional advertising focuses on the name and prestige of a company.
Institutional advertising is sometimes used by large companies with several divisions to link the divisions in customers' minds. It is also used to link a company's other products to the reputation of a market-leading product. Product advertising tries to sell a product. It may be aimed at the end user or at potential representatives and distributors. Product advertising may be further classified as pioneering, competitive, and reminder advertising.