Does Your Company Need A Logo?

There is always controversy when it comes to the topic of whether your company should have a "logo" or not.  Some people firmly believe that you have to have one, while others say it's not necessary at all.  But who's right?

I took this question to a variety of firms that have company logos.  I personally conducted a survey by asking presidents, vice presidents and owners of companies using them why a company logo was necessary to their business image.

In summary, it is NOT necessary for your business to have a company logo UNLESS your particular company is in a class that demands one.  According to an article in "Income Opportunities," Jay Lander, founder of Lander Design in Metuchen, New Jersey, states:  "Logos make sense for real estate firms and others who have lots of competition as well as for those with opportunities to 'show off' a logo -- on lawn signs, print advertisements, stationery and business cards.  Restaurants, which typically need to distinguish themselves from the pack, put logos on matchbooks and usually carry the design on their menus."

Lander further states:  "The size of an organization is not a good measure by which to decide in favor of a logo.  Many businesses prod along fine without any."

What's the Real Purpose For One?

Two "real" reasons:  (1) for customer identification, and (2) for prestige.  Wendy's restaurant, for example, has a logo of a little red-haired girl in pigtails.  If you're driving down Route 66, you normally can recognize a Wendy's restaurant several miles away because of the shape of the company's logo on their sign.  Also, you don't have to read the words "McDonald's" to know it's a McDonald's restaurant.  Instead, you recognize it by the golden arches.

But does a regular mail order business need one?  Probably not.  The reason I use the word "probably" is because a company logo is only necessary if your market demands it. Any good business, after they have had time to grow enough to have a customer base of repeat customers, will get to know them on a more personal basis.  We do this to learn our customers' needs and wants so we can sell them the proper products and services.  When that time comes, as a mail order business you can make the decision whether or not to have a company logo.

How will you know?  Because your dedicated customer base of repeat customers will demand it.  However, if your customer base is comprised mainly of small businesses on the same level as yourself, it probably won't be necessary to have a logo.

What About Prestige?

If you want to make your company appear like a professional organization because you want to attract business from other professional organizations, it may be necessary to adapt a company logo regardless of whether  you need one or not.  This is called "prestige." Established multi-level marketing firms use company logos to provide their distributors with company recognition as well as prestige.  Other smaller companies use them solely because the owner believes it makes him or her appear more established in business.  Whatever the reason, it basically boils down to what you want to do.

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