A logo is a principal part of a firm's branding strategy by being the name, symbol, monogram, emblem, trademark or any other graphic representation designed to provide consumers with instant brand recognition. A logo is the most remarkable element of branding strategy as it establishes and promotes a successful brand name, while representing a firm's usability and trust as a brand.

Successful brands are typically built on the firm's attributes, benefits, values and personality. Therefore, successful logos are always clearly differentiated from rival brands. A distinctive logo guarantees that a firm stands out of the crowd by having a unique concept supported by a strong communications program. Successful logos guarantee that a firm is not perceived as unimaginative or mistakenly thought for a rival company. Successful logos represent the organizational culture of a firm and they convey a warranty of quality to the target audience.

The benefits associated to the use of a successful logo primarily include the establishment of a competitive edge. Strong brands help a firm maintain market share within a changing competitive environment, which, in turn, is associated with above-average profits. In addition, a distinctive, instantly recognizable logo offers to the firm the opportunity to capitalize on familiarity when introducing new products or services that carry the same name. In this context, successful logos bring instant recognition for a firm. So, if a firm does not have a quality and effective logo, it misses something that would provide the firm with a greater advantage to its business operations.

Typically, successful logos are clear, short, and simple, easily memorable and recognizable and easy to spell, read and pronounce in all languages. Consumers should be able to read the logo and to realize what is suggests so that it can successfully stimulate their interest in the firm and its offerings. In that sense, successful logos depict the organizational goals and values, while suggesting the product or service benefits.

Successful logos mirror professionalism and growth even if a venture is small. In addition, they are adaptable to packaging and labeling needs or to any advertising medium and they include the minimum information required in order to avoid having a negative impact on consumer perceptions about a firm. Finally, they never get out of date and they are legally available for use.

Above all, a logo is used as a brand identifier for a firm. Confident branding uses a logo to convey the message of a firm's positioning aiming to attract the target audience. Using a distinctive logo facilitates promotional efforts, enables the company to charge a premium, and helps fostering brand loyalty.