What is a shortcode and when do you need one?
A shortcode is a number of a few digits that people can send a keyword to. Think of "Text INFO to 1234".
Why short
Because it has to be memorable and typeable from a poster, a radio spot or a package. A full mobile number is too long for that.
What it is for
Sign-ups where the recipient takes the initiative: subscribing to alerts, entering a promotion, making a request. The keyword tells you immediately what someone is responding to, so you can run several campaigns over the same code.
When you do not need one
If you mainly send yourself and only want to be able to receive replies, a virtual number is enough. That is simpler and cheaper.
What to allow for
A shortcode is allocated per country and takes time to arrange. Plan that well before your campaign starts — not the week before.