Hi- I'm not an expert but it seems like you could create a main landing page that includes links to all possible cities (maybe use a div tag for all that extra info.) at: web-design-firm, then create a specific landing page for each city: web-design-firm/birmingham then optimize that page. It's a lot of work for someone advertising to a lot of different locations, but you could use the opportunity to add really great locally-specific content that would help your users and SEO.
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RE: Optimizing for Local Terms