Vector images are typically generated using drawing or illustration programs such as Adobe Illustrator, Corel Draw or Inkscape. Vector images are composed of mathematically-defined shapes, lines, curves, fills and colors. When you view a vector-based image on your computer screen, you are seeing a mathematic formula pieced together by your machine and rendered as a image. Because a vector image is made up of numbers, these images are easily modified within the creating application and are not affected detrimentally by scaling. Vector images do not render photographic imagery very well.
Vector graphics are great for rendering images that are made up of shapes and colors. Because of this vector graphics are ideal for creating and printing logos and emblems.
Raster images are produced by digital image capture devices such as scanners or digital cameras and are edited in pixel editing programs such as Adobe Photoshop or GIMP. Raster images are composed of a grid of tiny little dots that are described as a certain color. When you view a raster image on your screen, you are seeing a bunch if little colored dots that are mapped out to make a complete image. Raster images are more difficult for computers to render or modify, which increases their file size. Raster graphics are also impacted by scaling.
Raster graphics are great for producing images with lots of vibrant or varied colors such as photographs or drawings. Because they are impacted by scaling, they are not so good for producing logos and trademarks.