- It assists clients in differentiating the product of one company from the other. This serves as a tool in checking counterfeit or fake products.
- It helps the manufacturers of the product in maintaining the quality of their products. This heightens the value of their products.
- It gives information about the origin of the product so that customers who are dissatisfied with the specifications of the product can relay their queries with little or no difficulty.
- It serves as a legal property of an association or institution. Logos serve as symbols of authority of a company. It assists foreign investors and traders in quickly identifying the owners of a particular product so that they can do business transactions with them.
- It must be simple in design to aid in easy identification and recognition by clients.
- It should be able to give quick description of the activities of the company or association.
- It has to be highly original and distinct from those already used by other companies.
- It must be attractive in design, shape and colour (if any).
- The shape must have symbolic or philosophical meanings that have a bearing with the values, ideologies and aspirations of the company.
There are basically four types. These are Text, Iconic, Graphical and Illustrative logos.
- Text logo. This is the incorporation of the company or brand name into a uniquely styled font design. Sometimes, the initial letters of the company name or popular brand name is used in the designing of the logo. Text logos are also referred to as logotype/word mark or letter mark. Examples of text logo include PZ Cussons logo, FedEx, Dell, Sony, CNN, Nokia, Flickr, Nook etc.
- Iconic logo. This logo involves the use of an abstracted symbol or sign that mostly reflect the activities of the company or the popular product. It does not include any written text or letters. It is only the symbol or icon that distinct the company from others. Examples of symbolic or iconic logos include Shell, BMW, Apple Company etc.
- Graphical logo. This is a graphical representation of the activities or products of the company. It is a combination of both the text and iconic logo styles since it employs both text and letters together with a symbol. It is sometimes referred to as combination marks. Examples include Reebok, NASA, Pringles, and Samsung etc.
- Illustrative logo. This is a pictorial representation of some aspect or activities of the company or product. It is very complex or detailed than the graphical and iconic logos. Aside the pictorial component, sometimes the name of the business enterprise can be combined with the pictorial element. Examples include New Orleans logo etc.