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