In creating an Islamic marketing concept, Alserhan et al. (KHI) +92-21-3561-3066/7 • Haroon House Dr. Ziauddin Ahmed Road Karachi, 74200 Issue 3 2010. 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. The … Talha Salam is a faculty member in marketing at the FAST School of Business. These principles offer a means to create value and elevate the standard of living of people in general through commercial pursuits. 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. What is IslamicMarkets.com? Islamic marketing is a great Ave nue for research. It would be better if a businessman paid attention to the prevailing norms or trade procedures that exist in Islam. Thus, labelling a consumer class as ‘Muslim consumer’ has to be done more insightfully. 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 include Burger King ads in local publications and TV commercials wishing Muslims happy Ramadan. 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. In popular understanding, Islamic teachings apply to the content and characters used in advertisements being socially acceptable or not. This article attempts to give some insight into this emerging discipline as well as its potential implications. 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. Muslims now want a marketing system that is in accordance with the laws of Shariah. Most of the companies spend considerable amounts of money on advertising approximately 25% of the total budget. Unique communication strategy: Customize your messaging to appeal to Muslim values, needs and sensitivities. Connect & Collaborate. Examples of companies in the travel industry that provide no customization and yet are used by Muslims are: Trip Advisor, Avis car rental, Europcar. You will also need to consider how you will accommodate both Muslim and non-Muslim clients. 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. This observation holds true for any market in the world regardless of whether Muslims are in a majority or not. 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. Islamic finance strictly complies with Sharia law. Examples include hotel brands such as Sofyan Hotels in Indonesia or De Palma Group of hotels in Malaysia that market themselves as sharia compliant. 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. This model can also be used to explore Islam’s potential influence on marketing. Product 5. Islamic Marketing 1. 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. If this approach is applied and consumers are segmented by religion, Muslim consumers can be identified in any society. Rather, it is to initiate an exploration into the nature of the ‘Muslim consumer’ and ‘Islamic marketing’. Excellent job. 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. Aren't they using religion to further their business? Evaluate if the Muslim market potential is sizeable and relevant to the markets in which the company is operating or plans to operate. 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 … Thus, it can be concluded from this review that the overall potential of Islam’s influence is much greater than what is commonly recognised. Bai Salam. Brief Background on Ramadan. 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. This book analyzes the current Islamic marketing environment. Ramadan is the Islamic holiday that takes place during the 9 th month of the Islamic lunar calendar. Below is a brief description of each of the steps. Advertising is very crucial for increasing the revenue of an organization. Elfakhani and others published Marketing of islamic financial products | Find, read and cite all the research you need on ResearchGate Recently, in a scholarly article, I came across the term ‘religion-marketing intersection’. A marketing research questionnaire is essential if you are to grow your business. For tailored recommendations that correspond with your company’s unique needs, contact us to schedule a complimentary Marketing Strategy Consultation. No doubt it is an emerging field and it will take a long time to realize its full potential. The nexus between Muslim consumers and Islamic marketing. One of these sectors that have seen a great deal of Islamization lately is the marketing sector. Market Islamic banking Financial Products Takaful Investment Products Equity Sukuk Sharia’a-compliant derivatives • Islamic Fund Management • Islamic REITs • Islamic Structured Products • Islamic stock broking • ijara • istisna’a • musharaka • Sharia'a deposit investment products • Money market products • Financing products • Other Investment products Exchange traded “We strive to be a Shari’ah compliant brand”. Boycott of Danish products.2. Issue 3 2011 Exploring Islamic markets and Muslim consumers selected papers from the inaugural Global Islamic Marketing Conference, UAE, 2011 . It requires a whole new product line or business unit to be created to address unique Muslim product needs. Below are key areas of consideration: Channel strategy: Determine the media channels you will use. PDF | On Jan 1, 2007, S.M. 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. How many 'old style store' vendor are dressed in rather a 'pious' attire! Several Western fast food chains including McDonalds, KFC and Subway are opening more and more outlets that serve Halal products, and … 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 4. In order to determine your strategy, identify the key trends and opportunities specific to your sector. 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. Market positioning: The most important aspect of marketing to Muslim consumers is appealing to their values with sincerity. It requires a whole new product line or business unit to be created to address unique Muslim product needs. 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. Terms and Conditions • Privacy Policy. In the emerging arena of Islamic marketing, a key area of focus revolves around understanding Muslim consumers. The latter refers to the extent to which individuals follow religious tenets and indoctrination. Readers may find developments of interest blogged at ogilvynoor.com. Issue 2 2011. (2016) suggest that "the focus should be, first, on the development of Islamic marketing's own (organic) constructs." 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. You have the following options: Level 1: Mainstream (no customization): This is a “do nothing” strategy in terms of customizing for the Muslim market. 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. Other segmentation variables such as, for example, age, economic class and education play a greater role in consumer behaviour. Objectives. Level 4: Mainstream Product Extensions: This involves developing a new product within an existing brand that addresses unique Muslim requirements. Marketing ethics in Islam has principles that maintain the rules in Islamic law or the rules of Islamic economic law. Marketing Mix Islamic 3. Issue 2 2010. Consider using targeted channels that include local media, religious media, in addition to other Muslim lifestyle channels. In developing your strategy, you will need to determine how far you will customize your product or services for the Muslim market. In hard core segmentation theory, segments are defined as groups of consumers who tend to act in a similar manner. Their kitchens are Halal certified, they have large prayer rooms and conduct congregational Friday prayers, and all female staff wear Islamic clothing. 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. 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. New York City, NY 10004 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. Islamic Marketing is the study of marketing phenomena in relation to Islamic principles and practices or within the context of Muslim societies (Jafari, 2012). Once the market customization strategy has been determine, you will need to plan a marketing strategy that aligns with your customization efforts. These conditions make it impossible to sell debt in a capital market and create imaginary assets, which enable transactions of a speculative nature. 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. 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