Thursday, August 15, 2019

What is the importance of the logo in business?

Recently I was asked the question;
“What is the importance of the logo in business?”


Many views and opinions exist on the topic of a business logo.

One of the commonly accepted ideas is that a logo acts as identification.

Although this is a truth, a logo's role and function extends beyond this. Your logo not only acts as a building block in your business identity, it is fundamental to your business brand.

Many different businesses exist. These operate in different economies. Some businesses exist based on “word of mouth”. Typically if one of these grows and expands, it builds into an existence in many interconnected economies. The business evolves into a business organization that needs to be distinguished from other competitive businesses. It requires a device that identifies the business’s product or services to consumers. The idea and practice of trademark has evolved as a means to solve this.

Logos and Trademarks confusion ™ ® 


The term logo can be confusing. Logos are one type of device. There are several types of devices and multiple categories of logos and trademarks. To keep it simple these are sorted into three marks;

1. Wordmarks, also text logos, also lettermark, (Name-only-logo; BRAUN, XEROX. Initial-letter-logo; IBM, CNN. Name-symbol-logo; Ford, Hertz, Nike)
2. Device marks, also symbol mark, also brandmark or icon, (Pictorial-name-logo; Apple computer’s apple, twitter bird. Associative-logos; Michelin man).
3. Composite mark, also Combination mark, both a wordmark and a device mark.

A trademark is a device which can take almost any form as long as it is capable of identifying and distinguishing specific goods or services.

Historically, or traditionally, the term “trademark” described only marks designating products or “goods”. Today, the word is often used to describe both goods and services type of marks.

Commonly, wordmarks are referred to as “trademarks” or “text logos”. Device marks are referred to as “logos” “icon” or “symbol mark”. Composite marks are referred to as “combination logos” as “character” and “emblem”.

This trademark topic is covered in depth in an earlier post. Trademarks, Logos an Introduction 


Trademark considerations, a graphic design perspective on the importance of the logo in business. 

Logos are more than words or devices;
• They identify a product, service or organization.         
• differentiate a product, service or organization from others.
• They communicate information as to origin, value and quality.
• Logos add value-at least in most cases
• Represent potentially valuable assets   
• Serve as important legal properties

To obtain a deeper understanding and a more in-depth answer to your question “What is the importance of the logo in business?”, hire and consult with a local graphic design business.


Ted Baker Design can not only answer this in great depth, but will help you determine if your business is in need of a logo and ensure that you choose the best trademark for your business.

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