ISLAMIC MARKETING

(MBBC 4263)
Junainah Idris
junainah@kuis.edu.my
013-363 9249
Learning Outcomes
• Understanding Islamic Marketing
• The principles and Key Elements of Islamic Marketing
• Definition of Islamic Marketing
• Importance of Islamic Marketing
• The differences between Islamic Marketing and conventional
marketing
 What is Islamic Marketing?

The Process of identification and implementation

Syed Ali of value maximization strategies for the welfare of
Hussnain the stakeholders in particular and the society in
(2011) general governed by the guidelines given in Quran
and Sunnah
 What is Islamic Marketing?

The process and strategy (Hikmah) of fulfilling need

Md Mahabub through Halal (Toyyibat) products and services with
Alom and Md the mutual consent and welfare (Falah) of both
Shariful Haque parties i.e. buyers and sellers for the purpose of
(2011:75) achieving material and spiritual wellbeing in the
world and the hereafter.
 Muslim Consumers Behaviour

Muslim
• Submissions to God’s wills
Belief

• Halal (permissible)
Rules for Act • Mushtabeh (doubted)
& Practices
• Haram (not permissible)
-14 years to be removed from Arab
boycott list.
-Banned from trading to Arab world
because refuse to abide with Arab
league economic boycott of Israel.
- Took long many years to build
brand in Arab market
Pepsi abide the boycott
and enjoyed the
bounties of the lucrative
Coke-less Arab markets
in the boycott days.
 statement on Facebook saying (2014):

“We wish to reiterate that McDonald’s does NOT channel any sales, profits or franchise
fees from our restaurants to support ANY political causes or conflicts in any part of the
world. There is absolutely no truth in any online allegations suggesting otherwise. Our
core values dictate that we operate our business ethically and to the highest standards.
This is a value that we uphold with utmost conviction. In Malaysia, we are proud to be
part of the local community – providing opportunities for local franchisees and careers
for 12,000 Malaysians, serving our customers with passion and respect, and actively
supporting meaningful causes to enhance the lives of the needy.”

Anti-Israeli protest outside a McDonald’s Malaysia

McDonald's outlet in Malaysia placed a full-page
advertisement in a local
daily on August 7, 2014
to deny claims of its
alleged links to Israel.
 Islamic Ethical System
Interpretations of
Muslim Scholars Socioeconomic systems that guides
(ulama’) the behavior of Muslim
The example set
of Prophets
companions
Saying and -Importance of human well beings & good
behavior of
Rasulullah S.A.W
life.
-Religious brotherhood & sisterhood.
-Socioeconomic justice.
Qur’an -Balance satisfaction (material & spiritual)
 Principles Governing Islamic Ethic

Unity Iman Khilafah Balance Justice Free will

(faith) (trusteeship) (Adl)
• Moderates • Human are
• Allah is a • People are free will to
in all affairs
sole • Following Allah’s
• Required from guide their
creator of shariah all parties own lives by
trustees in (management, implementing
the law the earth employees, Allah rules
universe customers,
suppliers other
public)
 ISLAMIC MARKETING
VS CONVENTIONAL MARKETING
Components Conventional Islamic
Efforts Aimed at obtaining financial Sincerity, to ensure financial and
returns non-financial returns
Capabilities Subject to the limitations of Emphasizing physical, intellectual
physical and intellectual power and spiritual strengths
Remuneration Leading to remuneration in the Remuneration in the world as well
world as in the hereafter
Performance Quantitative and significant Dual dimension (Qualitative and
dimensions intangible)
Key Elements of Islamic Marketing
Need

Welfare
Strategy
/ Falah Key
Elements
Mutual
Halal
Consent
 • Basic needs are universal and resources
are available to meet the basic needs of
all human being.
• Human needs are varieties and business
play an important role to fulfil the
Fulfillment of Needs human needs and it is essential to fulfil
and Necessities all those needs
• In Islam people should consume
according to his needs.
• Businesses should provide information
clearly to the benefit of people
 • Wisdom in pursuing strategy.
• Hikmah will guide one’s resources
moderately to meet one’s needs and in
spending whatever is left for charitable
purposes.
Strategy / Hikmah
• Hikmah through interacting with changing
environment, situation and even it can
purify morals, habits, customs, beliefs,
outlook, social, cultural, economic,and
political life of mankind as a whole.
 Mutual Consent
“O Believers, trade by mutual
consent” (An-Nisa, 4:29)
The strong feelings from both
parties at the same time of
exchange should be surrounded
by if, however, the dimensions
of accountability before an All-
Powerful Being, from whom
nothing can be hidden (Al
Ma’ida, 5:3)
• The contract of sale becomes lawful
with the consent of both parties.
• Mutual consents means that the
exchange must be operated on the
free will of buyers and sellers and
free of under pressure, fraud and
deception.
• Must not encourage competition
rather ensure cooperation among all
stakes without elements of
compulsion or cheating.
 • The Halal is which Allah has made
lawful and the Haram is that which
he has forbidden, and that
Halal concerning which He is silent He has
permited as a favour, (Qardawi,
“Oh mankind! Eat from the
1980).
earth that which is lawful and • Marketers must ensure that the
wholesome” (Al-Baqarah, product is pure, processed in
2:168) permissible manner and would not
cause any harm to the consumers
and the society.

Welfare / Falah
“Our Lord , gives us what is
good in this world and also
what is good in the hereafter
and saves us from the torment
of Fire” (Al-Baqarah, 2:20)
• Islamic marketing must ensure human
falah on the basis of cooperation and
participation between producer and
consumer, seller and buyer.
• Market is viewed as a mechanism or
institutions in which buyers and sellers
interact with goods and services in
establishing prices through balances the
conduct of buyers and sellers in
ensuring greater welfare in this world,
as well as the greatest reward in the
world hereafter and maximize profit.
 Islamic Values in Business

Prohibition of Prohibition of
Prohibition of
bribery or fraud and
discrimination
rashwa cheating
Muslims are to recognize that
wealth, earnings and material goods Prohibition of
Prohibition of Prohibition of
are the property of gods, and certain
humans are merely His Trustees. interest hoarding
earnings
Everyone must behave responsibly
and honestly.
 Islamic Values in Business
• The sales and marking of all the instruments meant for prohibited acts when the
benefit intended to accrue from them depend solely on them like gambling
instruments.
• Adulteration with something concealed in the sale and purchase is forbidden.
Such as mixing water with milk and mixing low quality food with high quality food
without informing the other party is prohibited.
• Do Marketing for concerts, music albums and website containing music is
prohibited (not related to Islamic)
 Islamic Values in Business
Subject
Agreements and promises
Consideration for others
Consultation
Continuous improvement
Cooperation.
Equality and unity
Fairness in dealings
Fairness in wages.
Hard work.
Helping others
Honesty and justice.
Humble.
Patience.
Righteous/Intention
Al-Qur’an Verses
Ar-Rad 13:25, Al-Qasas 28:28, Yunus 10:71
An-Nisaa’ 4:36, Al-Mumtahina 60: 9.
Ash-Shura 42:38, Taha 20:103, Al-Kahf 18:22
Al-Araf 7:42.
Al-Hujraat 49:9, Maryam 19:96.
Al-Isra’ 17:35.
Al-Anaam 6:152, Al-Mumtahina 60:8, An-Najm 53:32, Al-Maida 5:8.
Al-Imran 3:57, Saba’ 34:37.
Al-Baqara 2:62; 82, Al-Anaam 6:135
As-Saff 61:14, An-Nahl 16:97, Yunus 10:41
Al-Baqara 2:177, Az-Zumar 39:2; 3
Hud 11:23
Hud 11:11
Al-Baqara 2:25; 225, Al-Baqara 2:62, At-Taubah 9:105, As-Saff 61:8, Al-Qasas 28:19

Social order. Al-Imran 3:110, Al-Baqara 2:273

Truth. Al-Anfal 8:27, Yunus 10:61, An-Nur 24:8

Source: Adapted from Ali (1987)