Logo design is extremely important to businesses. Take the familiar Logo of the Nike Swoosh, a logo that took Nike from dominating 18 percent of the sports market from over 43 percent.

The Nike Swoosh, which by the way was created in 1995 for $35 dollars, is a perfect example of a logo in that it is a visual mark, but also originally had words.

And a second-word logo, “Just do it,” really put Nike on the map.

So what is a logo?

Essentially a logo is normally a visual image such as the Nike swoosh, being used to represent the company. While most companies have logos, a logo can in itself totally represent the company as in the fashion industry. Ask most women and they can tell you by the logo whether the brand is Louis Vuitton, Prada, Burberry, Gucci, Chanel or Hermès.

The same with cars. Although they can’t drive yet, nearly every boy and some girls can tell you the model of the car you drive, whether Chevrolet, Ford, Mercedes, BMW or Toyota just by the emblem on the car.

Why does your brand need a logo?

There are many reasons but the primary one is to turn a companies reputation into a brand that people trust.

For example, I know very little about washing machines, but if my old Sears Washer conks out and my wife drags me to a big box store to look at new washers, I look for the LG log, the Samsung logo or the perhaps Maytag.

I know what I don’t want and that’s some Chinese brand with a logo and a company name I’ve never heard of.

Logos, although they can be misleading, do simply the process of shopping. In fact, many husbands and wives use logos as a shorthand for brand names.

If my wife goes shopping for example and I want her to pick up a bottle of wine, I’ll simply tell her to buy the wine with a kangaroo on the label (yellowtail.)

In a similar fashion, If I’m going to the grocery store and she wants me to pick up a jar of box of cereal for the kids she might just say, “Tommy likes the one with the Tiger on front.” No need to remember Kellogs Frosted Flakes.

People remember logos much more than they remember 10,000 brand names.

What is the significance of a companies logo?

Essentially a companies logo design is an invitation to trust them that they will take care of you.

As we said, sometimes this can be misleading, and as an example I’ll use a penny stock company that made millions by switch its name to Stratmont Oakwood from the previous name Stratton Securities.

Of course, we are talking about the real-life but glamorized firm known by the book and the movie, “The Wolf of Wall Street.”

Of course, this was a case of the bad chasing the bad, but it was only after Stratton Securities became Stratton Oakmont, with a stately lion in its logo was the company able to fraudulently make big money.

On the positive side of things, a brand such as Louis Vuitton stands for quality. If a woman buys a Louis Vuitton purse, she doesn’t need to sit up half the night researching whether they were made with craftmanship or whether her purse was designed in some Bangladesh sweatshop.

Why a brand should have a logo?

There are many reasons, which we’ll discuss in more detail shortly, but the main reason is to differentiate itself in the marketplace.

Brands do this in part by indirectly state the niche they are going for.

As an example, you will notice that a logo for TJ Maxx, Payless Shoes or Target is significantly less flowery than a logo for Gucci or Prada.

The logo for many brands helps clarify the shopping nice they are going for. Target’s logo for example, is much simpler than a high fashion logo such as Dolce and Gabbana or Prada.

The top 10 reasons why a company needs a logo?

Making a first impression

The marketplace is very crowded. There may up to 20 top national insurance companies. Of course, it depends upon what the company is going for but they may wish to convey security in the case of the powerful stag on the Hartford logo, the good hands of All-State, or the familiar Geico gecko.

Quick recognition is another factor.

When my daughter was only 4 and I went off to some training in the Air Force, on the way back home after 2 months I stopped at a Burger King.

My daughter couldn’t read, but she sure as heck recognized the Burger King logo from the empty bag. You guessed it, the next day we were there to get her favorite happy meal.

One of the major reasons that recognition is so important is the cost of advertising.
A single 30-second commercial may cost a company $120.000 (not counting production costs, and several million for a major event like the Superbowl.

Time is indeed money, and the logo can quickly identify who the company is immediatly.

Proffesionalism

This one is easy. If you want to project a professional image, start with a professional logo.

We love for example how Apple has shown its logos over the years with a partially bitten apple, although we miss the rainbow version.

Brand loyalty

Customers who love your brand may not only wear t-shirts with your logo, but will be looking for that familiar logo while shopping.

Consistency

Shoppers crave consistency in their lives and a logo helps supply that.

Representation

Even when you can’t be there to speak, your logo will do so. People are really proud for example of wearing Nike swoosh clothing.

Set yourself apart.

There are so many competitors. Your logo, if it is powerful enough, will tend to set you apart.

Communicate a message.

This can be quite simple. Remember Coca-Cola’s commercials “I’d like to buy the world a coke?” Trademark and logo words all the way.

Establish ownership.

Nobody can use your logo but you.

Meet customer expectations

Customers expect top brands to distinguish themselves for their benefit and help cut through the clutter.

How can you establish your logo importance?

The main way is to develop logo importance is simplicity together with a logo that really represents the company.

Logo benefits

The main logo benefits are to build trust in your company as well as to make their lives simpler by cutting through the clutter.

Of course, your business logo can’t be just thrown together. Even Nike’s business logo went through multiple variations before they settled initially on the words Nike and the swoosh.

Logo design

Leave logo design to the pros. Few in-house employees have the skill to do what great design companies do with a logo.

The difference between a brand with a logo and without?

Mainly in growth. A small company may get away for a while without a logo, but if they want to get larger and expand, a logo will be necessary.

Conclusion

A great logo can make or break a company. Start the ground running no matter how small your business and you open up doors to growth.

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