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Purpose
Business logos are intended to be the "face" of a company: They are graphical displays of a company's unique identity, and through colors and fonts and images they provide essential information about a company that allows customers to identify with the company's core brand. Logos are also a shorthand way of referring to the company in advertising and marketing materials; they also provide an anchor point for the various fonts, colors and design choices in all other business marketing materials.
Brand Identity
Logos are the chief visual component of a company's overall brand identity. The logo appears on stationery, websites, business cards and advertising. For that reason, a well-designed logo can contribute to business success, while a substandard logo can imply amateurishness and turn off potential customers. However, a logo should cohere well with other aspects of a company's visual presentation: No logo, however well designed, can look good when surrounded by contradictory graphical elements or inconsistent fonts. This is why a logo is the basic unit of a larger brand identity that includes company fonts, colors and document-design guidelines.
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