Keyword research basically is a process of searching and finding actual search terms that people enter into the search engines when they are conducting a search. The research is typically done through using either an online service or software. Keyword research tools help you find the best keywords for your site that can help drive targeted traffic to your website. For instance, if my site sells "gluten free dog treats", I would want to know what keywords people enter to find these products.
Optimizing my pages for "gluten free" by accident or by design would be a poor choice because there are many "gluten free" products on the market that have nothing to do with "dog treats". Attracting searchers to my site for "gluten free" will result in wasted traffic because few searchers, if any, will be looking for "gluten free dog treats". This is the difference between targeted traffic (looking for "gluten free dog treats") and untargetted traffic (looking for "gluten free breads").
Each page should focus on one or two keywords or phrases that you know your customers use, and to do that requires that you use a good Keyword Research Tool to find the most appropriate keywords to use based on frequency (how many searches per month) and competition (how many pages are competing for the same search term). There are many tools available to use, both free and commercial.
Since the introduction of Google's Adwords Keyword Tool and the Search Based Keyword Tool, which are FREE to use, there really isn't any need to pay money for a keyword research tool unless you are involved in a very specialized project.
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