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A dynamic website is a cost efficient way to allow for client updates, using no coding knowledge. This type of website also has more dynamic content and sub navigation according to how the visitor progresses through the website. This type of website does include a Content Management System (CMS) which allows for updating all content on the website with no coding needed.
A basic HTML website is "static" meaning that in order to update content a designer would need to be involved. There is no Content Management System (CMS). This type of site is good for a website with an infrequent need for content updates.