Below is a brief description of each of the steps. Islamic marketing is a great Ave nue for research. Image credit: justyn. This article attempts to give some insight into this emerging discipline as well as its potential implications. Islamic Marketing Laith Eid, MBA Marketing Manager – Ketab Technologies 2. However, the message is not customized to Muslims. Thus, it can be concluded from this review that the overall potential of Islam’s influence is much greater than what is commonly recognised. example, Islam give information to its supporters to get capital on the other hand it stresses that this attainment would not to be present by attain laid-back money through Riba. Level 3: Unique Messaging: In this level of customization, you will target Muslims through targeted media channels, coupled with unique messaging that addresses their values. Price Different Price Ibn Taymiyah Competitors Umar Ibn al-Khattab 6. 'Islamic marketing' has been used for as long I can remember! Under these basic tenets, different pricing models and practices should be carefully reviewed and revised. The Handbook of Islamic Marketing provides state-of-the-art scholarship on the intersection of Islam, consumption and marketing and lays out an agenda for future research. Product 5. Examples of istisna in the Islamic finance world include: projects and residential properties financed by the Kuwait Finance House under construction as of 2012. the Barzan project, the "biggest financing operation in the energy sector carried out by Qatar Petroleum" uses Istisna and Ijara and as of 2013, had US$500M "earmarked" for it. Below are key areas of consideration: Channel strategy: Determine the media channels you will use. Product 4. Issue 2 2010. To begin with, when it comes to the product, Islamic teachings and rulings (fatwas) have been largely limited to pronouncing food items as being halal (allowed) or not, and almost any product marketer wanting to engage Muslim consumers will find it critical to have the product certified as such. Level 2: Unique Media Access: This level of customization focuses on engaging the Muslim audience by using media channels that are targeted towards Muslims. Evaluate if the Muslim market potential is sizeable and relevant to the markets in which the company is operating or plans to operate. Some of the opportunities include a growing demand for Muslim-friendly resorts, convergence with other travel sub-sectors or other Islamic economy sectors, and the rising middle class, especially in South East Asia. Connect & Collaborate. This article is not even a primer to the discipline of Islamic marketing and is intended to underline the importance of this emerging discipline. Issue 1 2011. Unique communication strategy: Customize your messaging to appeal to Muslim values, needs and sensitivities. Furthermore, any element of deception in pricing vis-à-vis product features is discouraged. The challenge of online privacy preservation in Muslim-majority countries during the COVID-19 pandemic Dina El-Bassiouny, Noha El-Bassiouny. However, at the same time it should be observed that their purchasing behaviour is quite diverse. talha.salam@nu.edu.pk, For questions regarding subscription and timely delivery, please contact on the following numbers or visit What is largely missed is another area which Islam focuses on and which relates to communicating the product’s features in their entirety and without deception. These conditions make it impossible to sell debt in a capital market and create imaginary assets, which enable transactions of a speculative nature. In the case of IBBL for example, as a market leader in the Islamic banking industry, this bank should take on the role of a barometer of the industry and thus, lead the way in setting price structure for the market making price and making other marketing changes. For tailored recommendations that correspond with your company’s unique needs, contact us to schedule a complimentary Marketing Strategy Consultation. Furthermore, although over the course of the last few decades a reasonable understanding of Islam’s influence on marketing and consumers has developed in terms of knowledge and practice, with the recent emergence of Islamic marketing as a discipline, new perspectives and dimensions are being revealed. View Cedomir Nestorovic’s recently published book: Islamic Marketing: Understanding the Socio-Economic, Cultural, and Politico-Legal Environment, Springer 2016 Extract: This newly published book analyzes the current Islamic marketing environment in a Muslim world which is extremely diverse in terms of economic development, customs and traditions and political and legal systems. Our Inbox and Messaging services connect financial firms and investors with the largest, most established Islamic markets community in the world. A similar set of guiding principles relates to distribution channels, for which Islam prohibits any kind of monopolisation leading to unfair pricing. Islam’s influence on marketing has always been felt in different ways, and is most commonly expressed in Muslim consumer markets in terms of food items being halal or not. The nexus between Muslim consumers and Islamic marketing. For example a travel company in Spain needs to determine whether there is a sizable number of Muslim travelers visiting the region in which it operates. Excellent job. Efforts like these are now helping shape the characteristics of Muslim consumers and will go a long way in making marketing activities in Islamic markets more effective. USA, #225, Building 8 WB In 2008, Nestle achieved US$5.2 billion revenue in Halal products alone. GOT IT Adherence to the Islamic ethics in the Islamic banking industry can help elevate the standards of both behaviour and living of bankers and customers alike. In fact, despite the prominence of Islam, there has been little literature on Islamic marketing (Temporal, 2011; Alserhan, 2010). Place Islamic Principles Value Satisfaction Delivery Physical 7. A marketing research questionnaire is essential if you are to grow your business. Rather, it is to initiate an exploration into the nature of the ‘Muslim consumer’ and ‘Islamic marketing’. You will also need to consider how you will accommodate both Muslim and non-Muslim clients. Level 5: Unique Branded Products: This is the highest level of customization. (KHI) +92-21-3561-3066/7 • Haroon House Dr. Ziauddin Ahmed Road Karachi, 74200 Islamic marketing (IM) is a relatively new development in marketing thought and the term IM has not been addressed satisfactorily in the literature. Elfakhani and others published Marketing of islamic financial products | Find, read and cite all the research you need on ResearchGate This observation holds true for any market in the world regardless of whether Muslims are in a majority or not. It would be better if a businessman paid attention to the prevailing norms or trade procedures that exist in Islam. Ramadan is the Islamic holiday that takes place during the 9 th month of the Islamic lunar calendar. IJIMB aims to advance academic and practical marketing knowledge through the promotion of the entirely new discipline of Islamic marketing and through the engagement of the academics representing more than 1.5 billion Muslim consumers who remain largely unknown to researchers. This book analyzes the current Islamic marketing environment. Islamic finance strictly complies with Sharia law. For instance, in Pakistan (a market of more than 170 million Muslims), there are no homogenous consumer patterns anchored in Islam. In reality, however, it is the other Islamic banking providers that are enjoying these competitive advantages over IBBL. In fact, halal, has been the underpinning link between Islam, product development and marketing. These principles offer a means to create value and elevate the standard of living of people in general through commercial pursuits. Travel related examples include airlines offering Halal food options, special ‘Islamic themed travel packages. Since Islam places a greater emphasis on duties than on rights, social good or the 12 The Principles of Islamic Marketing benefit of the society as a whole, not profit, should guide Muslim entrepreneurs in their decisions. Recently, with marketing practices becoming more diversified and mature in Islamic markets, the influence of Islam has gone beyond the traditionally assumed areas of its application. Islamic marketing and for the same reason we can’t even find a proper definition of it in any book or on any website. This term fascinated me for its implicative context, which has been largely underrated in marketing knowledge and practice. The degree to which this instrument is used varies largely, based on regulatory requirements, cultural context and consumer tendency to observe such annotations on packaging at the time of purchase. Although neither the term nor the phenomenon is new, it has recently found traction in markets where consumers follow the world’s fastest growing religion: Islam. Readers may find developments of interest blogged at ogilvynoor.com. In a recent article in the Journal of Islamic Marketing, researchers explored the link of new product adoption and religiosity. PDF | On Jan 1, 2007, S.M. Islamic Marketing 1. What is IslamicMarkets.com? Is there anything in Pakistan where religion is not discussed? 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 Criticism1. In this guide we briefly cover some of the various aspects of Ramadan marketing to help you be more successful with your seasonal marketing efforts in Muslim regions. Thus, labelling a consumer class as ‘Muslim consumer’ has to be done more insightfully. For example, will you focus on accommodating the basic needs of Muslim guests, in terms of Halal food, and travel spaces; or will you go a step further and offer gender segregated activities by providing separate pool and spa facilities for men and for women. (LHR) +92-42-3575-8120-25 • 20-N, Gulberg II Lahore, 54660 Promotion is another area where Islamic teachings and rulings have directed practices. One of these sectors that have seen a great deal of Islamization lately is the marketing sector. This article contains 15+ marketing questionnaire examples and templates you can use as a guide to create professional-looking questionnaires that get you the best results. Volume 1. Although the degree of influence religions have on the lifestyles of their followers is yet to be conclusively defined, it can be said with a bit of certainty that Islam, compared to other mainstream religions, has a stronger influence and impact on the lifestyles of its followers. Market positioning: The most important aspect of marketing to Muslim consumers is appealing to their values with sincerity. Marketing in Islam must contain Islamic marketing which is marketing that always pays attention to the rules and objectives of Islamic economics. Brief Background on Ramadan. – The purpose of this paper is to explore the foundations of an Islamic market oriented cultural approach regarding its possible implementation by non‐Muslim firms., – The paper is based on a critical review of existing literature on Islamic marketing and branding. (2016) suggest that "the focus should be, first, on the development of Islamic marketing's own (organic) constructs." In the emerging arena of Islamic marketing, a key area of focus revolves around understanding Muslim consumers. It requires a whole new product line or business unit to be created to address unique Muslim product needs. In hard core segmentation theory, segments are defined as groups of consumers who tend to act in a similar manner. Examples of companies in the travel industry that provide no customization and yet are used by Muslims are: Trip Advisor, Avis car rental, Europcar. Marketing Mix Islamic 3. Islamic Perspectives on Marketing and Consumer Behavior: Planning, Implementation, and Control brings together the best practices for entry and expansion of global brands into Islamic countries. For example, if an Islamic bank purchases a home and sells it on an installment basis to a buyer, the bank is the owner of the home until the final payment is made. How many 'old style store' vendor are dressed in rather a 'pious' attire! Islamic teachings do guide a merchant on being principled in charging the right price. In determining your strategy, consider current trends and opportunities and decide what themes you will focus on. In popular understanding, Islamic teachings apply to the content and characters used in advertisements being socially acceptable or not. In fact, there is a concerted effort by different circles to grasp the influence of Islam on Muslim consumer behaviour, including Oxford’s Saïd Business School, Ogilvy Noor and the Journal of Islamic Marketing. 80 Broad Street, 5th Floor Also consider ethnic nuances. Islamic marketing ethics combines the principle of value maximization with the principles of equity and justice for the welfare of the society (Abdelkader Chachi and Abdul Latiff, 2008). Education is needed to avoid manipulation. Issue 1 2010. Another area of Islamic product development is interest-free financial products. It requires a whole new product line or business unit to be created to address unique Muslim product needs. Once the market customization strategy has been determine, you will need to plan a marketing strategy that aligns with your customization efforts. Most of the companies spend considerable amounts of money on advertising approximately 25% of the total budget. Some of the puffery in advertising, which may be considered part of the creative space, may be questionable if reviewed from the perspective of Islamic teachings and principles. Examples include hotel brands such as Sofyan Hotels in Indonesia or De Palma Group of hotels in Malaysia that market themselves as sharia compliant. Other segmentation variables such as, for example, age, economic class and education play a greater role in consumer behaviour. Recently, in a scholarly article, I came across the term ‘religion-marketing intersection’. Promotion Islamic Ethics falsetestimony Salesman Advertisement 8. For example some of the trends in travel include an increasingly growing middle class, increased digital connectively, and rise of socially responsible travel. Their kitchens are Halal certified, they have large prayer rooms and conduct congregational Friday prayers, and all female staff wear Islamic clothing. Islamic marketing ethics combines the principle of value maximisation with the principles of equity and justice for the welfare of the society. Talha Salam is a faculty member in marketing at the FAST School of Business. This is because it enables you to know to know exactly what your customers want so you can tailor your products or services to their needs. Advertising is very crucial for increasing the revenue of an organization. (ISB) +92-51-220-2701-5 • Plot 12, Sector G-7/1 Mauve Area, Near Zero Point Islamabad, 44000 Introduction Islam is a supreme package of guidance for all mankind. This model can also be used to explore Islam’s potential influence on marketing. Since the Muslim world is extremely diverse in terms of economic development, customs and traditions and political and legal systems, it is vital for companies and marketers to analyze the environment before attempting to address these markets. Issue 3 2010. Issue 2 2011. A great deal of academic work and practice-oriented debate is required to help develop actionable practices. Contemporary Islamic finance is based on a number of prohibitions that are not always illegal in the countries where Islamic financial institutions are operating: This area, further popularised by the concept of Islamic banking, is much broader than Islamic marketing itself and has now developed into a parallel stream of banking operations in many parts of world. The label of being a ‘halal’ or ‘Islamic’ product may be used as a communication instrument. Examples include hotel brands such as Sofyan Hotels in Indonesia or De Palma Group of hotels in Malaysia that market themselves as sharia compliant. As Muslims, we live our lives in a very simple yet specific way, which guarantees us good health, spiritual well-being and above all a closeness to our creator Allah (SWT). Examples of that include clothing manufacturers, such as DKNY, that produce a line for Muslim women; another example is Sunsilk shampoo for Muslim women who wear a headscarf. The players of an Islamic marketing system deal with dual objectives (a) Maximization of the profits and utilities, i.e. In creating an Islamic marketing concept, Alserhan et al. New York City, NY 10004 Aren't they using religion to further their business? UAE, NJ, USA registered business Strategy Insights Inc., D.B.A DinarStandard. Level 4: Mainstream Product Extensions: This involves developing a new product within an existing brand that addresses unique Muslim requirements. However, in the title of this article, including it this way is not to conclusively imply that there is a ‘Muslim’ consumer and that there is such a thing as ‘Islamic’ marketing. If this approach is applied and consumers are segmented by religion, Muslim consumers can be identified in any society. In order to determine your strategy, identify the key trends and opportunities specific to your sector. “We strive to be a Shari’ah compliant brand”. Islamic teachings and the marketing mix The marketing mix, commonly referred to as the four Ps (product, price, place and promotion), gives a broad framework on which an … Depending on the type of product/service you offer and where you are based, there may not be a need. Issue 3 2011 Exploring Islamic markets and Muslim consumers selected papers from the inaugural Global Islamic Marketing Conference, UAE, 2011 . DAFZA Dubai – 54194 Once certification is achieved, the product is deemed to have crossed the hurdle of being ‘Islamic’ and can be marketed in any way. Boycott of Danish products.2. Terms and Conditions • Privacy Policy. Generally speaking, Islam’s influence on pricing strategies is underrated. In typical English writing, a square bracket implies that the contained word(s) are part of the phrase. Frequently asked questions. It should also address the potential of what Spain has to offer Muslim travelers: Islamic heritage sites, Halal food, family-friendly atmosphere, etc. Bai Salam. Companies in each industry sector should also carefully decide what to name the sector (taking in consideration both the industry’s and consumers’ perspectives) and consider standardizing the term across the industry. 1. Many of our brothers and sisters have followed this example as have we at MBM. Marketing Mix From Islamic Marketing Perspective 87 Downloads 17 Pages / 4,200 Words Add in library Click this icon and make it bookmark in your library to refer it later. Excerpt from Article : Islamic Marketing Strategy As the population of Muslims is increasing over time, there is also an increased demand of the introduction of Islamic principles in different sectors. Several Western fast food chains including McDonalds, KFC and Subway are opening more and more outlets that serve Halal products, and … Advertising: An Islamic Perspective Dr. Mohammad Ekramol Islam 1 Mohammad Zahedul Alam 2 Abstract Advertising is a major element of promotion tool of a company. The … No doubt it is an emerging field and it will take a long time to realize its full potential. The latter refers to the extent to which individuals follow religious tenets and indoctrination. Marketing ethics in Islam has principles that maintain the rules in Islamic law or the rules of Islamic economic law. You have the following options: Level 1: Mainstream (no customization): This is a “do nothing” strategy in terms of customizing for the Muslim market. The above 4-step Muslim market strategy framework serves as a general guideline for companies targeting Muslim markets. DinarStandard’s 4-Step Muslim Market Strategy framework guides new and existing companies in implementing an effective Muslim market growth strategy. Examples include Burger King ads in local publications and TV commercials wishing Muslims happy Ramadan. Get unrivalled access to financial intelligence and investment opportunities in Islamic markets, with our intra-daily market publications and reports. Consider using targeted channels that include local media, religious media, in addition to other Muslim lifestyle channels. But recently, some advertising makes … Islamic Marketing is the study of marketing phenomena in relation to Islamic principles and practices or within the context of Muslim societies (Jafari, 2012). Objectives. Muslims now want a marketing system that is in accordance with the laws of Shariah. The marketing mix, commonly referred to as the four Ps (product, price, place and promotion), gives a broad framework on which an organisation’s marketing strategy can be planned and reviewed. For example, Nestle is now manufacturing many of its brands using Halal processes and is working with Halal accreditation agencies to fast-track growth in Islamic markets. Although the marketing mix can also be defined by models other than four Ps, the four Ps model is what is popularly known as the marketing mix, and this article only reviews the four Ps model. 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