Say for instance I have a web design company in London but I think that there is less competition for 'website design manchester', could I be penalised for optimising for website design manchester when the company is based in London?

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Waterproofing for boots and clothing

Nope. You can't be penalized just because of that. As long as you are also targeting that location it will give your targeted traffic.

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valve replacement || seo packages

I totally agree

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Daily Diet Menu
Healthy Daily Diet

Thanks for clearing that up

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Waterproofing for boots and clothing

No. Not at all. The only issue will be in a "google local search" scenario. I'm doing "internet marketing Dallas" but live in Wylie, Texas. This has been accepted by Google for 2 years now.

Suggestion... In your title put 'website design London' but in your Meta description use 'website design manchester'. You should get both.

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2 links in sig files only

i don't think so too.. its still related to your site.. google will recognize it, if its google bomb.

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Pet Beds | No Bark Collars

ya will not be penalized just because using some theme based keywords it a comman seo technique to be used.

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unsecured personal loans | popular tourist places

But if somebody wants website design company manchester and after checking your contact number and address . He will let to know that your are not in Manchester.. So at that time you lost one client..
So my sugestion is to target only your local area ..one day you will get good ranking.

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Veiw my blog SEOseo-expert-delhi.blogspot.com

It will be fine, and the matter there is your optimization and the visitors to analyze your site, services and location. Besides your service doesn't require to be nearby or need to be close and have personal contact...

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petsafe | seo internet marketing