islamic marketing
TRANSCRIPT
Islamic Shariah Compliant Marketing
by
Aysha Karamat Baig
&
Munazza Saeed
Riphah International University
Pakistan
Road Map
1. Purpose of Paper.
2. Methodology.
3. Why is the need for Shariah Compliant Marketing?
4. Conceptual Frame Work of ISCM
5. What Shariah Compliant Marketing actually is?
6. Critical Assessment of Conventional Marketing.
7. Targeting Muslim Market Needs.
8. Marketing Mix in Islamic Perspective.
9. Challenges faced by Shariah Compliant Marketing.
10. Conclusion.
11. Implications
12. Limitations of the this Study.
Purpose
The purpose of the paper is to conceptually
demonstrate Islamic Shariah Compliant
on Conventional Marketing.
Research Questions
1. What is the Need of Shariah Compliant Marketing (SCM)?
2. What is the Conceptual frame of Islamic Shariah Compliant
Marketing?
3. How Differentiation Market Mix and Selling can be
discussed within the context of SCM?
4. What are the challenges faced by SCM?
Methodology
We build upon two strands of literature. The first belongs to the
one which discusses Islamic economics, Islamic business
ethics, Islamic banking & finance, consumer rights, and
conventional marketing. The second is Shariah that is The
Holy Qur’an & books of Hadith. Both are essential in
developing the concept of Islamic marketing.
Why is the need for Islamic marketing?
Islam is emphasizing on Qat Haldl (food earned through lawful
means). Pious people among Muslims are of believe that as nasty
and junk food spoils our health, just like that food earned through
unlawful means spoils our spiritual and moral health. Muslims
have to live in a way that is defined by the Allah SWT through His
Prophet (SAWW).
Conceptual Frame Work of ISCM
Critical Assessment of Conventional Marketing
A Muslim who has a sound base in Islam must identify what is
permissible and what is not, conscious consumption of Haram
things, without regret, holds the risk of spiritual or physical
punishments in the Islamic law and/or in the world hereafter.
Examples of Criticism
1. Boycott of Danish products.
2. Concerns over Chinese salt consumption.
3. Questions on consumption of a branded potato chips.
4. Dent in sales of a world known athlete shoe manufacturing
company.
Targeting Muslim Market Needs
Being innovative or different is very important today than it was some
years ago. Through differentiation companies compete in the target
markets(must be according to identified needs of target Market). Some
companies are differentiating their services to target the Muslim
consumers.
Examples:
1. Nokia differentiated its services by introducing its mobile phones in
Middle East and North Africa markets.
2. Sun silk Lively Clean &Fresh shampoo, differentiated by targeting
Muslim females, who cover their heads.
Marketing Mix in Islamic Perspective
It is hard to attain marketing mix consistency when implementing a
conventional marketing approach . Righteous deeds are hollow without
purity in matters concerned to production, consumption, marketing and
selling of products and services that are pure and lawful (Halal).
5 Ps of marketing mix
Product: Manufactured commodity should be legalized
(Halal) and its Impact on Customer Satisfaction should be
positive. According to Islamic values product must be lawful
and not create flatness of mind in any form, had not been
causing public irritation, or corruption, the article should not
be contaminated or unclean.
Price: Islam does not prohibit price controls and manipulations to meet the
needs of the market.
Place: The intent of distribution channels should be to create value and
strengthen the standard of living by providing Shariah compliant satisfactory
services.
Promotion: Purpose of advertising is to inform or educate the
consumers; it is pertinent that the information dispersed encourages good
deeds by portraying Islamic behaviors of respect.
People: Customer has right to get accurate information about the product
and is indicative of the status given to him by Islam, as well as of the
predetermined rights of his wealth that he spends in purchasing product of
any company.
Selling, in Islamic Perspective
The subject matter that is to be sold should be of some value, specific,
quantified shouldn’t be harmful for individual as well as for society and
can be capable of ownership, can be delivered and must be in possession
of seller at the time of sale.
Challenges faced by ISCM
1. Riba (Interest)
2. Ihtikar (Hoarding)
3. Adulteration
4. Taking oath in business transaction
5. Khiyar-e-Aib (Sale of defective goods)
6. Bai al-kali bil- kali (sale of one debt for another)
7. Al-Gharar (Selling a nonexistent commodity)
8. Short Measuring
Conclusion
Islamic teachings are civilized, create wisdom of responsibility and accountability in
the mind of believers. Muslim consumers feel comfortable with marketing practices
carried out in SC perspective, information about target Muslim market will be valuable
to both business as well as Muslim consumers in identifying the gap between Muslim
consumers expectations & current business practices with respect to Islamic marketing.
Islam does not bear intervention in the market system by hoarding, adulterating, and
other forms of exploitations and thus such products should not be marketed or sold as
well.
Implications
Managers should not suppose Muslims to be an identical and already
existing segment. They should focus on the business practices that are
described by Shariah and introduce these practices to flourish and capture
majority of Muslim Market, as Muslim consumers need great attention.
This paper emphasizes to build bridges for better understanding of social
wellbeing, it demonstrates the rights of consumer in marketing process.
Consumer shouldn’t be deceived or treated as a key to make money as
teachings of Islamic Shariah are equally in the favor of marketer and
consumer as well.
Limitations/ Future Research
The lack of research on Islamic marketing makes the
profundity of argument limited to a certain extent
Experimental validation still needed to be done.
Paper has been discussing only three concepts of conventional
marketing within Islamic perspective.
Thank you very much