Why Do Companies Have Logos?

companies-logos Credit: Getty Images / Staff/Getty Images News/Getty Images

Laura Lake explains on About.com that a logo is a symbol that provides customers with instant and powerful brand recognition of a business and the products or services being offered. It is part of a company's branding strategy, and it serves as a small ad for the company.

A logo aims to portray a company's values and goals, according to About.com. It is important to develop a brand strategy before starting the process of creating a logo, in order to avoid putting across the wrong message. A company must maintain a consistent brand message to improve customer recognition. When designing a logo, it is crucial to define a clear message that a firm wants the brand to convey. The logo will reflect this message, so there must be a strong association between the brand and the logo. Furthermore, a logo has to reflect professionalism and growth. About.com emphasizes that a logo plays a key role in attracting a company’s target audience and differentiating the firm from competitors.

Research shows that brand logos have the capacity to create a sense of motion that enhances a consumer's evaluation of the brand, according to Phys.org. Logos have been found to be a versatile means to reach customers, and they are often the first exposure of consumers to a brand or company.