Talk is the way you obtain quests from mages. Your reputation will also determine what kind of quests you get from the mages guild.
If you complete the quest you'll get 5 reputation points for the mages guild and the merc mages. I think you get a couple reputation points for associated factions too.
Well, when I go to the quest giver, I have an option to "get quest" or "talk". What I'm talking about is like the person you buy the spells from. I have the option the talk to that person. Most of the time, I just get the screen where I can ask about places and people. But sometimes, a quest will pop up when I talk to someone. Like I went to the quest guy today and clicked "Talk" instead of "Get Quest". He asked me to escort him to a different town. I wondered if that quest gave me region reputation points or mage quild points. I'm trying to raise my reputation in the region.