"The production of printed matter by means of a desktop computer having a layout program that integrates text and graphics" - Merriam-Webster Online Dictionary.
This industry makes use of largely Apple Macintosh computers, using software applications such as QuarkXpress, Adobe Illustrator, and Adobe Photoshop.
Generally speaking, the three main programs are designed for specific tasks:
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QuarkXpress: Primarilly a layout program. Strengths are in precise positioning, text and paragraph manipulation, creation and managment of multi-page books, and other features related to pre- press production. It's pretty expensive, but apart from the parent company's poor management decisions, it delivers its promise as the most comprehensive layout program.
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Adobe Illustrator: A vector illustration program. Used to create resolution-independant graphics with flat colours and gradients, with edges and curves that remain crisp at any resolution or size. Most logos are vector files. The most popular and compatible format this application saves its files in is EPS.
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Adobe Photoshop: A pixel-based image manipulation/painting program. Primarilly used to modify photographic images, create digital paintings, or create Web graphics, all of which are pixel-based rasterized images. These images are resolution-dependant. That is, they lose their integrity in crispness, definition, and detail, as they are increased in size. Most popular file formats are TIFF, EPS, GIF, and JPEG.