The main aim is to build a positive image for the firm in the eyes in internal and external public in institutional advertising. It does not attempt to sell anything directly. However, it does a lot of good to the organization as a whole. It forcefully tells how the organisation is a socially responsible institution. It also tells about the nationalistic learning’s of the organization. It shows how its actions are consistent with overall national objectives like environmental protection, employment generation, literacy, loss prevention, health for all etc. It is integrated to public relations function of the organisation.

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Institutional advertisements may be addressed either to consumers or other groups like government, suppliers, financial institutions etc. Effective institutional advertising evokes a positive response amongst the target group and creates goodwill. Institutional advertising may introduce products indirectly or may introduce the sales people indirectly. Glaxo’s advertising on child health may make doctors favourably inclined to meet its medical representatives.

Institutional advertising like product advertising can be in formative, persuasive or reminder-oriented.

Its objectives are of institutional/corporate advertising are:

To make the company known.

To make its products/services known.

To make its achievements known

To make its values known.

To make socio-political/economic/moral statements

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