Why do I need a logo?

What is the purpose of a logo and why do I need one?

Question asked by Kate Toon,  copywritingschool.com.au

In the words of David Airey, “A logoless company is a faceless man”.  A logo presents a business with an immediately recognisable image that helps manage the perception of its products and services, as well as differentiating it from the business’ competitors.

A logo serves two distinct purposes, recognition and brand equity.

Designer working on a logo design

Brand Recognition

We identify our friends, family and colleagues by looking at their faces. While their general appearance might change on a day to day basis, the face is the one thing that (generally) remains unchanged and easily identifiable – the same applies to logo design. If you do not have a logo, how is your customer going to recognise you in the pool of hundreds and thousands of businesses competing against you?

“When you close your eyes and picture McDonald’s, what do you see? Golden Arches? For those products and services that have a strong brand identity, it’s the identity that people often think of first rather than the product itself. Think of Microsoft, Apple, Ford and Target. Chances are high that without even showing you the logos, you have a fairly good picture of how they look. Granted, a huge marketing budget is necessary to achieve these recognition rates of these organisations, but it’s still always important to “put on your best face”. -David Airey “Logo Design Love”, Second Edition

Brand Equity

People will often choose a product or service based on their perceived value rather than their actual value. Logo design and accompanying brand identity when used continually will build awareness and understanding of your business and its values and strengths. Through this awareness, you will be building a trust associated with your brand in the customer’s subconscious mind, leading to the decision to engage in your services or purchase your products over your competitor. This is known as brand equity.

Alina Wheeler explains more about the importance of brand equity in her book:

“A brand or a company’s reputation is considered to be one of the most valuable company assets. Small companies and nonprofits also need to build brand equity. Their future success is dependent on building public awareness, preserving their reputations, and upholding their value. Strong brand identity will help build brand equity through increased recognition, awareness and customer loyalty, which intern helps make the company more successful. Managers who seize every opportunity to communicate their company’s brand value and what the brand stands for sleep better at night. They are building a precious asset.” – Designing Brand Identity – Forth Edition

© Studio: tiffany gouge