ABSTRACT:

The purpose of this research is to highlights the marketing challenges faced

by Islamic Banks in Pakistan especially the perceptions towards Interest (Riba)
free system.
Islamic Banking in Pakistan is three decade old but still it faces various
challenges while marketing their services.
First of all the strategic marketing challenges that includes segmentation,
targeting and positioning challenges for Islamic Banking services. Marketers are
still unable to tap the true high net worth individuals having Islamic mind set
those prefer to have other sources of financing than Islamic Banking. They are
unable to position themselves away from conventional banking products.
Secondly making brand is another challenge for marketers.
Point of parity (POP) and points of differentiations (POD) are not easily
understood by masses in Pakistan. The PODs are not clearly defined as their
competitive edge. Most of Islamic banks are unable to take advantage of brand
elements and secondary brand associations to leverage their Islamic Banks.
Thirdly Islamic Banks are unable to use Masjid and Madaris as
their distribution channels for Islamic Banking products.