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Google Keyword Planner – first stop for every Local SEO campaign. This gives you search volume and keyword suggestions. Update 2018: Still can give you a broad idea of the direction for your research, but cross check against other tools.
Bright Local – I use this service to track the rankings of my campaign keywords and perform some auditing tasks. Update 2018. I no longer use Bright Local. They have great tools, but their customer service went through a rough patch. I may go back, but I’ve put them in time out for a while.
Jaaxy – This is a fantastic keyword tool if your campaign is not local specific. Update 2018: I still use this tool on a regular basis
Wealthy Affiliate – their keyword tool is excellent and their SEO training is top-notch. They hold a beginner-friendly webinar every Friday night. Update 2018: the guys who own WA also have interest in Jaaxy. They took the best of their tool and merged it with Jaaxy. Even without the tool, I still recommend their Internet Marketing training. The Friday night WAbinars alone are worth the monthly fee.