I don't think you can in fact "isolate your market." Search engines are open to anyone/everyone and there's nothing to stop someone searching in say deepest Africa from being curious about businesses in say the south east section of London.
The nearest to limiting your focus is probably with your AdWords where you can imply that "this stuff can be found here rather than there." But again, searchers here, there, and everywhere can choose to click on your ad(s) if they've a mind to do so.
It isn't a perfect analogy, but it's like advertising a local service in a national newspaper. You're going to be paying for a lot of exposure that's of no real benefit to you. All you can do is to hope that you catch enough of "the right people" because they read this particular newspaper rather than any others.
However, when it comes to the SERPs you aren't paying one red cent regardless of you end up reaching, are you? For that matter, too, you are almost bound to get some "wrong clickers" with your AdWords as well, aren't you?
In any case, what seems a much more relevant concern is whether your campaigns are resulting in a satisfactory ROI.
Duncan
PS. If you aren't already doing so, I think you should certainly get your client listed in the Google Local pages. They don't incorporate ads and I'm not sure if anyone knows how well -- if at all -- they're effective, but there isn't any cost to them and they are at least likely to be called up by the very people you want to know about the business your client is in.
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