According to Wikipedia:
Along with the plot, character, theme, and style, the setting is considered one of the fundamental components of fiction.
Settings can be real or imagined -- it's up to you, the writer to decide. F. Scott Fitzgerald said: "The world exists only in your eyes." The location points in your novel are very important. They need to be fleshed out and appear alive in your book.
The easiest way to think about the setting: the story world.
There are various types of settings. For example, Dystopia / Fantasy city / imaginary worlds / blended locations (mixing of several places to create one - I do this a lot) / Utopia / Parallel universe, and the list goes on. If your book is on the presidential election, then the White House, campaign office, and road stops would be settings.
In my previous novels (and many short stories) I used New Zealand as the backdrop for my characters. My technique was to take the places I knew well and blend them together. I've done this for all my tales. I've also tooled up the cops. Although in NZL the police don't carry Glocks or other handguns. There is a handgun in the car (I won't say where) but most police officers don't want to resort to it, as they need to always keep one hand glued to the gun on their hip.
I am well-traveled in Kiwiland. I know my country like the back of my hand. I have plenty of photos of treks, mountains, beaches, and cities. I've lived in many towns across NZL, both large and small. It's a wealth of usable information. (Photography is a good hobby - it allows me to be exact in my descriptions.)
So now we are faced with yet another problem: Where are we going to put everyone?
In the novel; The Girl on the Train (a great book), there are six locations. Only three are vivid: Train, Apartment, and House. The woods (marsh?) are not very clear. The tunnel from the station to the road needed more detail. Having traveled a bit in London and the blurbs, I knew about the tunnels (great killing spots) and felt the author could have elaborated more. But that's okay. The book was bloody awesome. At the time of writing this, the movie has yet to arrive in Japan. I will probably see it. The wife loves these types of movies. I prefer books.
Most of the locations in a book should be based on a real setting. It's easier that way. I have read some ways online how to come up with a setting or break writer's block. Unfortunately, I think most of these are shit. I'm not a believer in taking a break from writer's block. I continue to pound at the keys. The words will come. They always do. I never give up. You shouldn't either. However, in saying that, a lot of people do take on the following suggestions. Maybe it helps.
Here are some of the suggestions I found: Listen to music / daydream / go for a walk/ world build / wait for inspiration / road trips / sit and think / get lost in your imagination. Apart from world-building, the rest are great ways to fall asleep, wait forever, and do nothing. But that's just me. Sorry if this stuff works for you.
Another option is to do what I do.
Wolf is set in Alaska. I wondered why at the time and thought of changing the location to New Zealand (like all my books). I know nothing about Alaska -- apart from TV shows or movie scenes. Each time I thought of changing the location, everything felt wrong. Oftentimes, the novel -- your subconscious -- your characters -- will know that the only place for the story is the first place that popped into your head.
As I said, I know zip about Alaska. But Google has God-like powers. It knows everything (including shit about you, that you didn't even know). If Google is God, then Google Earth is its eyes -- it sees all. This is the perfect research tool, and I will need to research many things, for example, the weather patterns for different seasons, tree types, critters, insects, animals, midnight sun, population towns, smallest, and largest. Stuff like that. Secondly, I need to research settings, schools, towns, paths, passageways, good areas, dodgy areas, killing spots, and wilderness areas. Location, location, location. Plus, my own ideas.
I will blend all this together into my town. With differences, so it doesn't resemble anything real but the casual reader wouldn't know the difference and an Alaskan reader would think, "sounds legit".
Plus, I need a name for this town. I can't call it Anchorage or Barrow. If I did that, things would need to be accurate or locals might shake their heads and close the book. That is not allowed. Unfortunately, I don't have a bucket-load of cash to pop over to Alaska and take a thousand photos, chat with locals, and learn the layout of the land. That would involve at least three months of living there. So, that leaves only the Internet.
After seven hours of research, I have learned many things. For example, did you know that Russia owned part or most of Alaska? I didn't. The US bought it for seven million dollars. Interesting, and that is good background. I found population counts, Ethnic counts, and most importantly I found five towns I can blend together to make my town. It's a start. But I am no closer to finding a name. Alaska has a score of interesting names, mostly Russian originally.
I was thinking Arrowhead, but there is a mountain by that name. Oh, is there a township near Arrowhead? Let me check. Hmm, Mount Arrowhead, is usually confused with Mt Verstovia which is viewable from Sitka city. Mt Arrowhead cannot be seen. It's a pretty small community old Sitka and an hour’s research shows it's not for this novel.
Unalaska, Alaska looks almost perfect from Wikipedia. I will need to access Google Earth and take a look around. Also, Anchorage’s outlying zones are also possible.
I still have no name for my mishmash township.
To keep things simple, I suggest using a place you know well. Or if you don't mind hours of research, then expand your book's horizon and learn about new places.
Whichever you decided, know your location.