Logos come in various shapes and sizes. But why do some logos contain only names, while others may have initials or a design? Thats because logos basically come in four types, and a business must choose the best type to represent their company.

The four basic logo types are:

1. Wordmark Logos

The wordmark logo is the most commonly used. It focuses primarily on text and typeface. Sometimes theres a graphical element included, such as the Nike swoosh. However, many wordmark logos dont contain graphical elements, so the words must convey the service or product being offered. Businesses like Office Max, Tower Records, and Home Depot have wordmark logos that convey the message thorough the business name.

Wordmark logos are good when your funds are limited, and you cant afford a large marketing campaign. If your business name is your logo, then you dont have to spend a lot of money building name recognition. If your logo consists only of an image, then youll have to spend money getting people to connect the image with your brand.

2. Lettermark Logos

A lettermark logo contains a typographic mark. It is usually the abbreviated name of the business or its initials. General Electric is better known as GE, America Online is better known as AOL. When you see GE or AOL, you immediately know which companies those letters represent.

Lettermark logos work best for business that can spend a lot on marketing. Unless your business is already popular, you will have to educate the public on what your initials mean. That can take a lot of time and money. General Electric and America Online had been around for awhile before people started to recognize their lettermarks.

3. Brandmark Logos

A brandmark logo is simply a symbol. Its sometimes abstract but serves to represent a business. One of the most famous brandmark logos is the Nike swoosh. Most people recognize the swoosh instantly, even when it appears without the Nike name.

Brandmark logos are a good choice when you want a symbol for a specific product or service. Its also a good choice if your business name is extremely long or bland. If your business is part of a larger group, then a brandmark can form a link, without having to use one name. But keep in mind that the public will have to be educated about what the brandmark represents.

4. Iconic Logos

Iconic logos are also popular. An iconic logo basically combines the idea of a brandmark with a wordmark. A well-designed iconic logo will communicate what the company does, as well as its personality. Iconic logos communicate more effectively than other types of logo, so it takes less marketing to get the point across.

Iconic logos are cost effective, and are excellent ideas for small businesses and start-ups. Since they usually have limited marketing budgets, they should get everything they can from their logo.

Now that you understand the different logo types, you can design or tweak your own logo.