Knowledge Base Now Business What is the significance of a logo in branding?

What is the significance of a logo in branding?

Designs- logo and branding

Great logos aid in business. A logo or an icon is a ubiquitous communication tool that appears on company’s products, frequently perceived by stakeholders and consumers. However, which sort of logo is perfect for your brand? A well-designed logo can offer valuable benefits to brands. It piques the interest of consumers, distinguish brands from their competitors facilitating brand recognition, influencing investors’ decisions and conveying what that brand is all about.

Factors like shape, business cues, colors, tone, typography, trends and sizes matter the most in logo making. Logos are largely classified into two types namely descriptive and non-descriptive.

Descriptive logo

This type of logo is a textual or a visual design with elements that clearly communicate the sort of product or service that your brand markets. Examples: Post-it, Burger King.

Non-descriptive logo

This logo variety does not indicate the type of product or service the brand sells. Examples: McDonald’s, Apple. Non-descriptive logos are considered better for companies that operate in several unrelated segments like Uber, Proctor & Gamble and Walt Disney company.

In an analysis according to Harvard business review, 60% of companies used a non-descriptive logo, while 40% used a descriptive logo. The study also reflects that descriptive logos more favorably impact consumers’ brand perceptions than the descriptive ones. Thus, they are also likely to increase the brand performance.

However, the magnitude of positive effect in consumer buyer behavior is smaller for familiar brands. It does not matter if it is a descriptive logo or a non-descriptive one to your loyal customers. Hence, when your consumers are familiar with the brand, they are less influenced by the logo design.


The effect of color on marketing study by Jacobs, Keith W and Hustmyer, Frank E concludes that people make subconscious judgements about products within the first few seconds of looking at them.


Color choices by biggest brands in the world are: Blue: 33%, Red: 29%, Black, Grey and Silver: 28% and Yellow or gold: 13%.

Effects of colour on logo

Yellow or gold logos can be associated with feelings like youthful, energetic, happiness and enthusiasm. They are used to relax, energise, stimulate and impact mood of your consumers. These logos work best for food, sports, travel and leisure. Examples: McDonald’s and Rockstar gaming. 

Green logos are used to express feelings such as harmony, growth, balance and nature. Shades of green are used to relax, revitalise, encourage and balance your consumers. They work best for food, environment, vegan, eco and leisure. Example: Animal Planet, Starbucks and Lacoste.

Red or scarlet logos are used to transmit feelings like excitement, energy, passion and courage. They are used to stimulate, draw attention of your consumers and create an impulse. They work best for entertainment, food, sports and protection. Examples: Coca Cola, Netflix and YouTube. 

Orange or peachy logos evoke feelings such as cheerful, friendly, optimistic, enthusiastic and playful. They are used to stimulate, communicate fun, freedom and fascinate your consumers. Orange color logos work best for art, entertainment, food, beverages and sports. Examples: Soundcloud, Fanta and Firefox.

Most used color, blue logos depict feelings like trustworthy, seriousness, security and confidence. They are used in technology, finance, accounting and aerospace. Similarly, there is a logical reasoning and aim behind the science of logo designs as shown in the infographic.

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Logo design infographic based on colour
Source: Zekagraphic

Prismatix services

Establishing a brand and creating awareness can be exciting as well as overwhelming. You are not alone. We know that it needs lot of understanding about the focus markets, core objectives of the firm, design experience and creativity to build a logo for a brand.

For a better understanding, here is our process from Intake to Invoice for a Logo design by Prismatix that offers a wonderful insight of this journey.

1.Client registration for logo: We believe that it is always good to conduct a preliminary research about industry and your competitors before the intake round.

2.Pricing: We shall discuss details like number of revisions covered, cost of additional change rounds, delivery formats and colors. An advance payment is often recommended at this stage.

3.Interview about business: We prefer to know what makes you unique or different from other people in the industry. We then identify your objectives so as to develop a timeless icon for your brand.

4.Presentation to client: This is an important stage where we can create a difference with our understanding about the client as well as their industry. We shall have a few designs handy and discuss revisions if necessary.

5.Final billing: Once a design gets accepted, we share it with the client in all agreed formats and an invoice for settling the account.

Our goals

We believe in the aforementioned characteristics and at the end of the day, the best designs and their meanings for your brands will be simple. They shall visually connect with the benefits or experience of your brand. They will be appealing to your prospects as well as existing customers. It would definitely be amazing to see that your brand is distinct from your competition.

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Image Credits: Upsplash