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When tackling the world of logos and images you will inevitably come across the words vector and bitmap. The barebones difference is that vector images are made up of lines and curves and bitmap images are made up of tiny spots of color called pixels.
You could think of vector as mathematical representation of lines and curves and bitmap a collection of millions of tiny dots of color to create an entire picture. The critical difference between the two is that vector images can be sized up to any size. You can get a 2 inch image and blow it up to be hundreds of feet wide if you wanted. Since a vector image contains information about he lines and the curves – there are no limitations to how much larger it can be made. Bitmaps are just dots – so the same rule does not apply to them. Since enlarging them means creating new pixels (dots) the enlarging inevitably leads to blurring of the image. So what’s the bottom line for you? If you intend to use a design as a company logo – you absolutely must get a vector format of the design.
There are many vector formats. There is Adobe Illustrator, Macromedia Fireworks, EPS, SVG, and Windows Meta File. BMP, gif, jpeg, and Tiff are just a few of the bitmap formats.

So where will you need a bitmap format if vector format is so great? For starters – you will need bitmap formats for web use. You won’t want to put up an EPS file or an AI file on a web page because browsers are designed to read jpeg, gif and png. The bottom line is that if you want to use your design for print – get a vector format. If you want to use a design for the web – get a bitmap format.