Final answer:
In 1971, Nike paid just $35 to Carolyn Davidson for the design of its swoosh logo, which is now valued at approximately $20 billion. The importance of graphic design in branding and identity is exemplified by designers like Paul Rand and the enduring nature of their creations.
Step-by-step explanation:
In 1971, Nike purchased the now-famous swoosh logo for a mere $35 from graphic designer Carolyn Davidson. The sum seems almost inconsequential compared to the staggering estimated value of the logo today, which is around $20 billion. At the time, Carolyn Davidson was a graphic design student at Portland State University when she created this iconic symbol that would come to be associated with one of the most recognized brands in the world.
Graphic designers like Paul Rand were significant in their contributions to branding and corporate identity during the 1950s and 1960s, creating logos with lasting impact. Brands often update their logos to maintain a modern and fresh appearance, but they typically wish to retain a connection to the familiar image that consumers recognize and trust. This principle guided the creation of many logos that have withstood the test of time, including Rand's designs and Davidson's Nike swoosh.