The title tag mystery

hi,
i would love to hear what SEO gurus have to say about this. my friend has recently launched an SEO firm 3 months ago and yes he is a new player in my country Malaysia.

I observed the title tag that he used ‘search engine optimization firm’, and the keywords with description resonates with that very same keyphrase. but strangely when i checked with Google keyword tool, if you gonna make ‘search engine optimization firm’ an exact search, it will bring very little traffic around less than 10 p/m for malaysia. For broad search will produce better traffic around 5400 searches p/m. The question for this one is should we use high traffic keyphrases on our title tag, description & meta keyword based on a) exact searches or b) broad searches??

My second question is why my friend’s website though using ‘search engine optimization firm’ as title tag still rank very low & deep in the SERP (around page 6-7) even though i queried the same keyphrase - search engine optimization firm in google as a broad search?? The results that appears in the first SERP (all 10) have sporadic keyword matches in them and not exactly as i typed. my friend’s site is no where to be seen on SERP 1 even though i queried the same keyphrase that matches the exact keyphrase on this title tags, description and keyword.

Is this due to poor backlinking as he was new? I dont deny that his competitors in the results of the first SERP though having sporadic keyword matches in the title tag and description have very high page rank like 3-5.

Any opinion on this?

Possibly relates to backlinks since that is a huge factor in ranking. May also relate to the actual content of the web page since that’s the other main factor. Such things as the title of the page are very minor in comparison.

id go for the high one, but you will also need to work a lot harder to get yours ranked at the top.