Entrepreneurs often approach me, seeking a remarkable logo for their business. However, there’s one truth I must share with them: a logo should be the least of their concerns.

Wait a minute. You might wonder, why would the owner of a design studio discourage spending on logo design? Well, let me explain.

When entrepreneurs express their desire for a great logo, it’s usually because they want to build a strong brand. And that’s fantastic because a brand is a valuable asset that sets businesses apart from their competitors. In an environment with fierce competition and constant change, a brand is the determining factor in customers choosing one business over another.

But here’s the catch: your logo isn’t your brand.

If you’ve read books on marketing or branding, you’ve probably come across this line before. But what does it really mean?

The marketing industry often misuses the term “brand.” Sometimes, it refers to a logo, and other times it encompasses an entire business. It can be confusing, and it’s enough to make you want to strangle the flannel-clad, tattooed marketing hipster in front of you.

To clarify, let’s delve deeper into the difference between brand, logo, and brand identity. By doing so, we can better understand the value of each and how to build a brand that surpasses competitors.

What is a brand (and why is it important to your business)?

Your company’s brand is the set of expectations, memories, and experiences people associate with it. It represents your company’s image and reputation. It’s the essence that people feel in their gut when they encounter your name, logo, or packaging.

Here’s an example: Imagine your wallet gets stolen during a vacation overseas, and the Chase operator takes excellent care of you. They efficiently replace your card, and you remember this act of kindness. Whenever you see the Chase logo, those positive memories flood back. You tell your friends about your experience when they complain about other banks.

Do you deeply love the bank itself? Probably not. You love the brand because of how well it fulfilled its value proposition. The logo alone doesn’t make you feel warm and fuzzy. It’s the impression the brand has left on you.

This illustrates why winning the hearts and minds of consumers in business is paramount. Experts say that a strong brand is the most valuable commercial asset a company can possess.

A strong brand increases the likelihood of customers choosing your product, attracting more customers at a lower cost per sale. Customers are willing to pay more and are more loyal to your company. It generates more revenue, profit, growth, and shareholder value. It helps attract, motivate, and retain your employees. Moreover, it acts as a barrier to entry for future competitors, creating a legal “monopoly.”

Your name, logo, and overall brand identity play critical roles in shaping your brand’s perception. They influence your brand but aren’t the be-all and end-all. Your brand is something that develops over time, shaped by every experience and encounter people have with your company.

If this feels overwhelming, it’s because it truly is. From the way your employees interact with customers to your advertising campaigns, signage, and website, everything shapes your brand.

That’s why business owners must prioritize branding efforts from the very beginning.

Now, let’s shift our focus to brand identity, the middle layer of the brand pyramid.

What is brand identity?

Brand identity consists of all the tangible elements that embody the look and feel of your brand. It’s a comprehensive system that includes logo design, typography, colors, and even the way you communicate. A strong brand identity leaves nothing to chance.

Even something as seemingly simple as product packaging can significantly impact how shoppers perceive your brand and their loyalty towards it. The colors you choose can directly influence people’s moods and your brand’s likability. For example, red sparks excitement, blue evokes competence, and black projects professionalism.

To illustrate the importance of brand identity, consider renowned brands like Apple, Coca-Cola, Nike, and Starbucks. They invest millions of dollars in comprehensive identity guidelines that govern how they visually and verbally communicate.

These guidelines cover everything from logo placement and authorized fonts to precise color codes for print and digital media. They even dictate layout grids for creating invoices, letterheads, and advertisements. Guidelines extend to the style of illustrations on websites and even the art direction of photography.

This meticulous approach ensures consistent brand representation across various platforms, even with numerous creative teams and external partners. Strong brands leave nothing to chance.

What is a logo?

After all this talk about brand, let’s circle back to logo design.

A logo is a visual mark that identifies a brand. It can combine symbols, typography, or opt for a wordmark alone. As the face of your brand, a logo is an incredibly important strategic tool.

A well-designed logo presents advantages beyond visual appeal. It commands attention, helps potential customers decide whether to engage with your business, and invokes a sense of professionalism. Even without words, a well-crafted logo demonstrates a commitment to quality.

Your logo is the one element customers consistently encounter when interacting with your business. It becomes synonymous with your brand, which is why the distinction between the two can get fuzzy.

What makes for a good logo?

Regardless of industry, type of company, ideal customer, or design trends, effective logos share three key characteristics. These qualities ensure that logos leave a lasting impression and effectively serve their purpose.

Let’s address what logos don’t need to be first…

1. Your logo doesn’t need to be pretty or love at first sight.

Far too often, logo designs are approved based on personal preferences and subjective judgments. In an ideal world, everyone would find your logo visually appealing, including yourself. However, taste is incredibly subjective and influenced by many factors.

For instance, some business owners grow attached to their first logo due to personal memories and associations. But attachment doesn’t necessarily equate to good design and performance. The good news is that you can grow to appreciate your logo’s aesthetics over time.

Consider the iconic logo of Chase Bank. Initially, John McCloy, the company’s chairman, despised the abstract symbol proposed by designers Tom Geismar and Ivan Chermayeff. McCloy even proclaimed, “I hate the thing.”

However, after six months, the logo became representative of McCloy’s bank. The logo won him over, and it has since become a timeless and effective symbol still in use today. First impressions can be deceiving!

2. Your logo doesn’t need to describe or illustrate your company’s products or services.

Creating a literal logo that directly explains your company or what it does is a sign of poor design. Not only does it limit your logo’s adaptability as your business evolves, but it also lacks memorability and distinctiveness.

To create an effective logo, focus on the following three key characteristics:

1. Simplicity

The most important consideration for logo design is simplicity. A logo may be visually appealing, but if it’s not simple, it fails as a logo. The simplicity of a design allows for adaptability across various mediums, sizes, and materials.

Think about the numerous places your logo will appear, from signage and print materials to social media avatars and websites. A simple logo is easier to handle and maintain across different situations.

Simpler designs are also more memorable. Our brains recall the essence of an object rather than every intricate detail. Think of iconic logos like McDonald’s, Apple, and Nike. They are minimalistic and instantly recognizable. Simple logos have a greater likelihood of standing the test of time, building recognition and equity.

2. Appropriateness

Your logo should capture the essence or personality of your brand without explicitly illustrating what your company does. To achieve this, consider your target audience and what appeals to them emotionally and practically. For example, a sportswear company’s logo might be bold and dynamic, while a luxury cosmetics company might opt for something more delicate and refined.

3. Distinctiveness

While it’s impossible for a logo to be entirely unique given the vast number of existing logos, it should still stand out and leave an impression when compared to competitors’ logos. A distinctive logo helps differentiate your brand and ensures it resonates with customers.

Now, let’s see these principles in action using the Chase logo.

The Chase logo perfectly embodies all three principles. It’s an abstract symbol, reminiscent of the water pipes laid by the Manhattan Company, which later became Chase Bank. The design is balanced, simple, and recognizable, even in smaller sizes or as a smartphone app icon. Most importantly, it is distinctive and memorable.

Developing a successful brand and logo

To develop a successful brand, it’s vital to have a well-defined brand strategy. Brand strategy guides your company’s core values, look and feel, tone of voice, ideal customer profiles, value proposition, differentiation from competitors, and marketing channel selection.

For instance, let’s compare Equinox and Planet Fitness. Both are gyms, but they serve distinct target audiences and employ different brand strategies. Equinox positions itself as a luxury gym for the affluent, emphasizing exclusivity and attracting dedicated members. In contrast, Planet Fitness is a low-cost gym that cultivates an inclusive, judgment-free environment, appealing to customers who find traditional gyms intimidating. Each gym’s brand identity, including their logo, reflects their respective strategies.

To conclude, a logo should be the result of a well-crafted brand strategy. Defining your brand’s core values, target audience, and differentiation is crucial before designing your logo and brand identity.

While developing a comprehensive brand strategy is ideal, a printable mini strategy worksheet is available to provide a starting point for small business owners. Keep in mind that this worksheet cannot replace a professional brand strategy project, but it can help you establish a foundation.

Remember, a logo is just one piece of the branding puzzle. Focus on building a strong brand to set your business miles ahead of competitors.

Connect with me to access the printable mini strategy worksheet via email.

And there you have it! The difference between brand, logo, and identity has been deciphered, providing a clearer understanding of each element’s value. Prioritize brand strategy, and let your logo and brand identity follow suit.