Why to optimize for specific location?
If you have a website targeting people from exact location, you will be interested in getting traffic mainly from that location. Ranking on the top for other countries won’t help you in your business. For example if you have a website to advertise a fast food restaurant, your target people are only nearby living or working.
So, how to optimize a website for a target location?
First thing – add your location in the text and add your address with post code in the contact page.
Some SEO experts advice to host a website on a server in the target country although I am not fully confident in this.
Web directory and article submission, social media
Submit your website to local web and article directories. Submit also in local digg clones. Mention your services in local forums. In the link name add the geo location.
Google webmaster tools have the option to select target geographical location. Add your business in Google local business center - http://www.google.com/local/add/