When you say “Local Market Strategy”, most people think of local as at the city level. In search that means Google Local, using Geographic delimiters in keywords, Local Directories, etc.

But for large enterprise sized clients, a local strategy is one for a particular country. Multi nationals typically are faced with the decision:

Are they going to have one overriding strategy for all markets

or

Are they going to have a local strategy (including different products, pricing, etc) for each market (country) that they play in.

and how this question is answered has a HUGE impact on your Search Strategy (at least it should).

Why is a Local Search Strategy Important?

Google gives preference towards local websites within the search results. Canadian companies get special treatment on .ca; Brit’s on .co.uk and recently American’s on .com.

As the search engine algorithms change, it is very likely that more weight will be given to local factors. Although it is currently very common to see a handful of large powerful sites dominating the results on a multitude of extensions, in the future it will become more difficult to rank in another country.

How does Google determines a websites nationality?

There are many factors that help the search engines to determine the nationality of a website:

1. the extension - is it a (.ca); (.co.uk); (.com.au); (.com); ect, etc.

2. Hosting - where is the site hosted?

The best way to be considered local to a particular extension is to either use that extension in your url or be hosted in that country.

Source: sitepronews.com