Its very important for you to be realistic on what keywords you are going to compete for. The more specific you get your terms the less people will search for them, but it will be easier to get a good rank for the term and the traffic will be more qualified. For instance, say you want to start you own a coffee shop in Decatur, GA and you want to start having live music. Keywords for people looking for live music might be:
General/National
Live Music
Coffee Shop
Specific/Local
Live Music Atlanta
Live Music Decatur
Coffee Shop Decatur
Too Specific/Not Searched For
Live Music at a Coffee Shop in Decutur
It doesn't help you to get placed for a search that only your mom would think to search for like "Jason's Coffee Shop In Decatur Live Music".
It can help to have some of the specific terms for PPC and SEO, but usually you'll get placed in the Too Specific terms when you target the Specific terms.
Tools
#1
Google's Adwords and Analytics also have some wonderful tools that you should explore.
https://adwords.google.com/select/KeywordToolExternal
#2
If the keywords you come up with are very general or will you will be competing on a national level you can also use Google Trends to compare keywords to see which ones get more traffic, what cities they search term is most popular, and the quantity that search is run through out the year.
http://www.google.com/trends
Integrating keywords into content
Now that you have your basic keywords its important to integrate them into your site. You can do this easily with your Category and Product pages. Simply add a single keyword or phrase to the SEO Link and Headline sections of your pages. You'll also want to try and include these phrases into your content, but only where relevant.
Published: January 28th pm31 12:42pm EthEST