What is the best way to bring a blog into my SEO strategy
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We have a blog set up with Blogger and generate some great content on it. What is the best way to optimise the blog from an SEO standpoint? In particular the domain name, it is currently .blogspot.com address, is there a better way to work with that?
Obviously the blog is branded with our company logo and name etc but is about the book industry. I'm basically concerned about linking people to our blog and not the website and so not getting much benefit?
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You should definitely bring your blog over to your own domain for all of the reasons you described already. Something like www.domainname.com/blog would be pretty ideal. This white board friday you should watch as well. It's really relevant to your question

http://www.seomoz.org/blog/mixing-viral-content-with-business-content-whiteboard-friday