When your company name is mentioned on alternative websites and other places on the internet, is a local citation. They are greatly used to help rank your business in the local search results. Some businesses that use local citations are YELL, SCOOT, FOURSQUARE etc, where the company name is mentioned explicitly. This may not necessarily include a link to the company website. Though there is an avid mention of the company name, address and telephone number (also known as NAP). NAP is usually listed in plain text form and Google utilizes the mentions to evaluate the online sanction of your business. It invariably creates a strong web presence by sending important signals to the search engine. Local citations are extremely important marketing strategy for a business with a web-based presence.