How To??? Long-Tail KW Strategy MASS Targeting “QUERY + [Location]”

So I’ve noticed this “Mass-Micro-Local SEO strategy” being employed by competitors in my niche (E-tailing beds in USA). They’re ranking perhaps thousands of pages for their “Primary-KWs + [Location]”

Example One:

“Mattresses 33130” Ranks #9 in Google http://www.usbeds.com/Location/Florida/Miami/33130.aspx


USBEDS.com has some 65,000+ Pages indexed with google, many of which are devoted to locations. This must be some kind of software that allows them to create these pages.


Example Two:

“Organic beds St. Louis”

http://www.mattressusa.com/organic-mattress/bay-saint-louis-ms/


I was told that mattressusa is using some sort of automatic software, creating pages automatically for many different geographic locations. Notice nearly all of the links point to another mirrored site(OrganicSleep,com).

Google lists 220,000 webpages indexed when using the “site:[rootdomain]” search.

I have a number of questions around this subject, both theoretical and specific…​

1. Does a Mass-Micro-local Strategy have MORE POTENTIAL than a standard strategy going after Primary Keywords?

In other words, would the cumulative search traffic from all the “Primary Keyword + [Zip/City/Neighborhood]” BE GREATER THAN the search traffic nationally for a primary keyword? I'm sure this depends on the category, but I’ve always wondered if all the longtail traffic combined would be greater than just ranking for the more popular short-tail Keywords?

Is “Bed Frames 90210” + “Bed Frames Dallas” + “Bed Frames NYC” + “Bed Frames Maui, HI”+ etc+etc+etc+ETC… > “Bed Frames”???​

2. Is there a tool to assist building out your website to go after these specific Keyword + [Location Modifier] terms? Anyone know the name of this tool/software?

3. While this strategy can be done on a small scale manually, does Google penalize companies for pursuing this strategy en masse? Would it be considered Blakc Hat or White Hat?

4. Is it better to pursue this strategy on a new domain, and then send people to your established domain (as mattress usa,com is doing), or can you pursue this on your primary domain (like usbeds_com)?

5. Does anyone have any first hand knowledge of working this type of strategy? What is it called, and do you know of any Agencies that specialize in this??


Thanks Everyone