Why does my company need a domain name?
Beyond what was mentioned in the previous question, you need a domain name so that people can find you on the web. Domain names exist because computers do not understand anything but numbers. And people have trouble remembering numbers; they would rather have words.
When you have a web site, say company.com, that domain name does not really exist. Your web pages are located rather on a computer that has been assigned a unique number. In our case, that number would be one of our web servers like 220.127.116.11. But just try having your clients remember that! What InterNIC (those folks who control the master domain name list) does is map your domain name to that number so that requests for your web page go to the right computer.
When someone types in company.com, that request first goes to InterNIC and the master database. That database notes that the domain company.com is not located on their own system, but they know a specific computer which does know where it is located. So they send the request to special computers called DNS (or domain name server) computers which are located at the web hosting company. That DNS computer then knows that, though itself does not have your web pages, it does know were to find them. The DNS computer then takes the request and points it to that machine mentioned earlier with the strange number (which, by the way, is called its IP or "Internet Protocol" number.)
Now the request for your web pages has landed in the right place and the web server can start serving out your pages.
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