As @affenlehrer points out, how you "define" a string depends on how you want to use it. In reality, 'defining' a string in C really just amounts to putting it in quotes somewhere in your program. You should probably read more about how memory works and is allocated in C, but if you write:
char *ptr = "???"
What happens is that the compiler will take the string "???" (which is really four bytes of data, three '?'s followed by one zero byte for the NUL terminator). It will insert that at some static place in your program (in something called the .bss segment), and when your program starts running, the value of ptr will be initialized to point to that location in memory. This means you have a pointer to four bytes of memory, and if you try to write outside of those bytes, your program is doing something bad (and probably violating memory safety).
On the other hand, if you write
char string[10];
Then this basically tells the compiler to go allocate some space in your program of 10 bytes, and make the variable 'string' point to it. It depends where you put this: if you put it inside a function, then you will have a stack allocated buffer of 10 bytes. If you manipulate this buffer inside a function, and then don't do anything with the pointer afterwards, you're all fine. However, if you pass back the address of string -- or use the pointer in any way -- after the function returns, you're in the wrong. This is because, after the function returns, you lose all of the stack allocated variables.