Yes, webpage title tags are one of the most important factors in search engine optimisation. You must have a good title tag. If you are running an online business it is common to see a title tag as the business name such as for example "Johnny's Pet Shop"  however this will not rank you well in the search engines except for maybe Johnny's Pet Shop.

You need to make your webpage titles descriptive and keyword rich with keywords that would marry well with the content of your web page. Using the pet shop example again I would use a title such as Online Pet Shop - Dog toys - Fish Tanks - Australia, Assuming that the pet shop is located in Australia and wishes to target the Australian Audience and also has major keywords for their website as dog toys and fish tanks.

The next task in regards to title tags for search engine optimisation purposes is to try and include heading tags on key text (h1 Tags) This will help in optimising your webpage.

Key Words - where should I put them on my webpage?

Your opening sentence for your web page should be keyword rich and descriptive. Make the first sentence count!  Using the pet shop example a good opening sentence could be: Online pet shop for dog toys, fish tanks and fish accessories, Cat Accessories, Bird Toys and more. For your Pet & Fish tank needs shop with confidence at Johnny's Online Pet Shop. 123 Example Street, Sydney, NSW, 2000 Australia. Phone: 02 0000 0000.

You should also have some keyword rich text for a closing sentence at the bottom of the webpage also.

Your internal links should be keyword rich: Include a title tag on the internal link and if possible link to webpage in your website that is also keyword rich which can help in Search Engine Optimisation.

An example of a internal link that is well optimised and linking to a page containing good keywords would be:

<a title="Online Pet Shop" href="http://www.johnnyspetshop.com/online_pet_shop.htm">Online Pet Shop</a>

I have found through my own personal experience on my own websites that it is good to use the list of 10 or 15 keywords that we are trying to optimise for then  list all the keywords down at the very bottom of the home page and link those key words to pages in your site that are relevant and keyword / content rich.

Make sure your website is full of quality content. apart from the list of keywords at the bottom of the website and the links it is important you try and provide lots of information in sentence form that is keyword rich.

As an example instead of just writing "we have a good range of dog toys" why not write: In our online pet shop we have a range of dog toys for Silky terriers, Maltese terriers &  Jack Russel's  and a we have good range of heavy duty dog toys in our online pet shop for large size dogs.

For search engine optimisation it is also good to use your keywords in ALT tags in images.

Website Description - How to make it good for SEO?

A Description can be important for search engine optimisation and by now I am sure you get the drift that your website description tag should be more than just Johnny's Pet shop - for all your pet needs, Sydney. NSW 2000.   Make your description tag as keyword rich as possible, Don't make it too long just one to two short but keyword rich sentences will do.

Website Search engine optimisation. What Else is important for SEO to help achieve higher rankings?

Offsite search engine optimisation is also important. Some of the search engines view link popularity as a major factor in ranking a website well. The more external links to a website the better! every link to a website counts as a vote for your website. However there are good external links and bad external links. If you are a website selling pet accessories you want to try and get links from pet websites especially the websites that rank highly for your keywords. If the link to your website is on a website or page that is off topic then generally the link will amount to little or no value for SEO. Another way to get links to your website is to submit to directories a good tool for this is Directory Submitter or another good way to get links is to write articles and submit to article directories a good tool for this is Article Submitter

Search Engine Optimisation Software: 

Search engine optimisation software that we find works well in helping to achieve better rankings are the following SEO Products.