Denotation refers to the literal or dictionary meaning of a word, while connotation refers to the implied cultural or emotional meanings associated with a word beyond its strict definition. Connotations are subjective and can vary between individuals and cultures. For example, while a red rose has a denotation of being a flower, it carries additional connotations of love, romance, or politics depending on context. Words like "inexpensive" versus "cheap" can have very different positive or negative connotations despite similar denotative meanings. Understanding denotation and connotation is important for comprehending subtle meanings in language and media.