1. Location factors Market

2. What is market? User-industries Consumers with purchasing power Densely-populated area ≠ market

3. Highly perishable products e.g. bakery. Bread is more perishable and bulkier than flour. They demand rapid delivery to the consumers. e.g. newspaper printing.

4. Fragile products requires special handling care. e.g. industries making furniture, glassware.

5. Industries that produce weight- gaining products e.g.soft-drink industries use syrups, sugar and vast quantities of local water to produce a product of relatively low-value and large bulk. e.g.brewery

6. Proximity to customers e.g. clothing and cosmetics industries. Market location enables suppliers to spot the trend and so adjust their output more rapidly.

7. Changes in market area served by industries with improved transport development and technical advance, the scale of production increases. Result: the market area of soft drinks industries and breweries expand to the national level.

8. Increasing importance of market as a location factor A large percentage of manufacturing is carried on under mass production methods i.e. large-scale production. As a result, the size of market becomes a critical factor in locating manufacturing ind. Usually firms are located at a nodal position in a transportation network in a large urban area so they can capture the large local market + easy to reach other markets

9. Increasing importance of market as a location factor Freight rates for finished products are higher than RM. Market locations offer intangible benefits. Information about market conditions, new technologies, and competition is most readily available in large urban areas.