If you don't know the difference between head terms and long-tail keywords, let me explain. Head terms are keywords phrases that are generally shorter and more generic -- they're typically just one to three words in length, depending on who you talk to. Long-tail keywords, on the other hand, are longer keyword phrases usually containing three or more words.
Google Webmaster SEO Starter Guide - Originally written for Google Employees to improve website performance with users and search engines. Related Terms: SERP - Search Engine Rank Position  |  PageRank (PR) - Named for Google Co-founder, Larry Page. The PR Scale of 0-10 rates a web page. In the past, rank was based on the number of high ranking links pointing to the website. Recently factors like relevance and quality have gained importance. This website's current PR rating: 
As you can see, LongTailPro is pulling data from Google Adwords. WHAT?! So LTP uses a mix of their own massive data (launched in 2011) and data pulled via API from Majestic.com, Moz.com, and Google Adwords (http://adwords.google.com). Once you input your seed keywords, LongTailPro outputs suggested keywords related to your seed keywords, search volume, Adwords suggested bid, Adwords competition, total words, rank value, average keyword competition, language searched, and location searched.
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In order to know which keywords to target, it's essential to not only understand the demand for a given term or phrase, but also the work required to achieve high rankings. If big brands take the top 10 results and you're just starting out on the web, the uphill battle for rankings can take years of effort. This is why it's essential to understand keyword difficulty.

Given you have a good idea of where to start and are fairly confident you are speaking the same language as your client, jump start research by generating related keyphrases and long tail variants with the ever so easy to use Google Autocomplete. This tool makes predictions based on what you are typing that are a reflection of Google search activity.
1 – I’ve found a niche with low competition and good CPC . but the thing is the while doing competition analysis. I observed that most of the sites that are in the top 10 serps ranking are small ecommerce site selling their own product or sites like niche specific classified ad site with low and thin content. What are your suggestions ? Should I go for such keywords ?

Because someone who is looking for something that specific is probably a much more qualified searcher for your product or service (presuming you're in the blogging space) than someone looking for something really generic. And because long-tail keywords tend to be more specific, it's usually easier to tell what people who search for those keywords are really looking for. Someone searching for the head term "blogging," on the other hand, could be searching it for a whole host of reasons unrelated to your business.
Let's say you're considering starting a new website, or venturing into a new product niche. And, suppose you'd like to somehow determine how much search buzz is currently hovering around this topic. You can use Keyword Researcher to get a "feel" for how much interest is actually out there. For example, let's say you were selling cameras. Then you might consider the following:

In a nutshell, Long Tail Pro helps you quickly find keywords in bulk based on a seed keyword that you input.  In addition to returning hundreds of related keywords, the tool also shows search volume (monthly search volume), advertiser bid, number of words, rank value, and my favorite Keyword Competitiveness (helps you judge the competition and keyword difficulty).
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