Once you choose keywords that are related to your website, there are a variety of ways that you can use your keyword list strategically to generate traffic. The actual placement of your keyword phrases on your web pages is important.
Each page of your website should be optimized for keyword phrases that are specific to that page. Keep in mind that the search engines rank pages, not sites, so you want to optimize each page of your website to rank well for a specific keyword phrase.
Your off-the-page optimization will actually carry more weight in Google than your on-the-page optimization. While the content must be relevant and the page elements need to be in good order, what your links say about your page is much more important than what your page itself says.