For example, let’s say you were running the website of an online pet store. You might be wise to create one keyword grouping for all your dog-related products, then one for all of your parakeet-related projects, etc. The next step would be to segment each individual group into smaller subgroups (parakeet cages, parakeet toys, parakeet snacks) and then even smaller groups for each type of product (low-fat parakeet snacks, luxury parakeet snacks… you get the idea). Now your pet store can create individual pages optimized for each small keyword group.
Be sure to re-evaluate these keywords every few months -- once a quarter is a good benchmark, but some businesses like to do it even more often than that. As you gain even more authority in the SERPs, you'll find that you can add more and more keywords to your lists to tackle as you work on maintaining your current presence, and then growing in new areas on top of that.

Additionally, there are many situations where PPC (a component of SEM) makes more sense than SEO. For example, if you are first launching a site and you want immediate visibility, it is a good idea to create a PPC campaign because it takes less time than SEO, but it would be unwise to strictly work with PPC and not even touch search engine optimization.

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