Can someone explain what the is meant by 'associating local business listings with proper categories'--apparently this is an import factor in trying to rank well in the local algorithm. i'm just a little confused as to what the categories are and how one woudl accomplish this-- if you didn't realize, i'm a complete newb to local SEO.
Local SEO is listing your Business in your local area where your business is located. When you create your listing it ask under which category your business fall for example hosting, Services - SEO etc
Just get some local links, ( if you are in Spain get some high quality one way .es links) and make sure the on page is optimized for what you want...