@nixCraft Let's skip the analogies.
A domain name is something like “google.com”. There can be many hostnames there like “google.com”, "mail.google.com”, “monopoly.google.com”, or whatever. Each of these can point to a different IP address (or addresses!).
You can have a different website on each hostname. You can have many hostnames point at the same website (like www.google.com and google.com being the same thing). You can have a hostname without a website.