The Latest Research Findings on Corporate Branding and Logo Design

By Adriaan Brits Sunday, August 23, 2020

When it comes to creating a business, all sectors matter. The birth of a business first starts with the idea and how to bring the idea to life. Whether it is a service or a physical product, it is always important to understand the market gaps and where your business will fit.

The first stage of developing a business is to understand its target audience. This all concludes to the demographics of the audience, including age, gender, location, and hobbies. Once there is a set model for the target audience, the next thing that needs to be taken into consideration is the corporate branding and logo design. Here are a few points to understand as to why this is important.

Logos: The Attraction

What attracts the client to the customer first is the exterior of the business. It is especially important to the brand image to look professional and alluring to the customer. According to Diego Alvarado-Karste and Francisco Guzman, their research based on ‘the effect of brands’ indicates that, “Brand identities have a dual nature that appeals to the head (rational appeal) and to the heart (emotional appeal) of their consumers. Furthermore, consumers can process information in a predominately analytic or intuitive cognitive style (CS) manner.” 

Guzman and Alvarado-Karste carried out an experiment that consisted of two steps. The first was to examine the effect that BI-CIS had on the consumer-based brand equity. The second step was to evaluate the effect of social influence-compliance, identification, and internalization had on consumer-based brand equity.

As a result, what they found is that brand duality is important depending on how the businesses can present “emotional or rational brand identities,” which depends on the consumers’ CS manner. This concluded that with the increase in the effectiveness of stronger brands, the brand’s value can increase. This means that this could be a valued connotation to the market segmentation.

The Impression that Logos Give

Focusing on the logo and brand image is just as important as providing good customer service to a client. It is what gives the customer the impression of your business and whether they should stick to you as a loyal client or not.

However, this can relate to all business sectors, such as educational institutions competing to get shareholders and students applying to the institutions. According to researchers, studies have indicated that one of the most powerful tools for educational institutions is running a website. It is a marketing technique that is used to attract students and stakeholders, plus with the right design and communication tools, it can portray a trustworthy brand that can leave a good impression.

This means that having a good impression as a business isn’t just in physical contact, but what you also leave as an image online for viewers to look at.

Logos and Identity

Traditionally, it is known that managers are in control of brand identity and how it is perceived as corporate businesses. However, even that has changed, and stakeholders are influencing the brand identity too. Researchers carried out a study in early 2020 that involved interviewing 37 B2B corporate brands. Corporate brands are known to have close relationships with stakeholders, which was the information that these researchers were looking into.

The study results indicated a continuous dynamic process where external and internal stakeholders participate in interrelated, yet different performances — including communication, internalization, contesting, and elucidating. This concluded to corporate brand identity being co-created with stakeholders.

The Logo Design

The logo design is just as important as the brand as a whole since it is the company’s visual. The logo design has to be memorable, have an iconic image or symbol, and stand out against the competition. 

Marketing professor Venkatesh Ganapathy concluded in his research that “as an integral component of a brand, a logo represents the visual identity of a brand. To attract attention and create differentiation in a competitive market, companies have to understand the crucial factors in designing a logo. Color psychology is being deployed to design a logo that is effective in increasing brand awareness and strengthening brand equity.”

This concludes to the fact that designing a logo has plenty of key factors that can play an important role. The colors you choose, the style of the logo, the simplicity or boldness of the logo, and even the message perceived by the logo matter. 

Nike, for example, has a simple tick. However, it is so easy and memorable that people will instantly connect the logo with the brand. This is the main objective — to connect the logo to the brand name so easily that clients will remember the business visually or verbally.

About the Author

Headshot of author Adriaan Brits

As an analyst of global affairs, Adriaan has an MSC from Oxford, with diverse interests in the digital economy, entertainment, and business. He is a specialist trainer in Advanced Analytics & Media.

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