There are many factors that affect a persons willingness to purchase a certain product or service, but in the absence of other information we still have a tenancy to reach for the product with the best packaging, because we draw a correlation between the quality of the wrapping and the quality of the product.

A company’s logo along with the rest of their graphic materials form a type of packaging that communicates the level of professionalism that a company possesses and inspires confidence in the consumer that they’re making the right choice in choosing that company’s product or service. More importantly a company’s logo is the visual representation of their brand.

Building a brand

A brand in simple terms is the essence of a company, it represents public opinion including the company’s strengths, as well as it’s flaws. It can be an assurance of quality and a tool to encourage loyalty.

When purchasing electronics a person may be willing to pay a much higher price for a Sony or a Panasonic, compared to a lesser brand because the logo on the front carries information about the product’s quality, reliability and performance. In effect the brand it self carries a monetary value.

Logos are symbols that collect and store information about a company and communicates that information to the consumer in the form of an instant subconscious response.

What make an effective logo

The factors that are most commonly acknowledged as the key traits of an effective logo are

1. Simplicity

Simplicity allows a logo to be versatile, recognizable and memorable. A complex logo contains too much information for the brain to instantly recognize and process.

2. Memorable / Distinctive

Of utmost importance a logo should make a lasting impression in the minds of consumers, creating a comforting familiarity that generates confidence and brand equity.

3. Timeless

The General Electric logo has remained largely unchanged for over 100 years. A logo design should never be based on current trends or passing fads. It should be made to last so that it can continue to build brand equity uninterrupted throughout the life of the business.

4. Versatility

Versatility means a logo function equally well on a 50 ft billboard as well as in the corner of a business card. A versatile logo can easily be used in one colour or black and white applications on a white background or a dark background.

5. Appropriate

A good logo should be appropriate to the audience it’s designed for. This requires a knowledge of the companies target demographic and the forms, styles and depictions that will be appealing to that audience.

Having an effective logo and an appropriate brand strategy is a cornerstone of a successful business and should never be and afterthought when starting a business or as you plan to grow your business.