MARKETING MIX MANAGEMENT

FROM AN ISLAMIC PEERSPECTIVE:

SOME INSIGHTS
Presented
by:
Professor Muhammad A. Al-Buraey
Professor
of Management
CIM, KFUPM, Dhahran, S.A.
Victoria Management School
August 2007
 INTRODUCTION
• Marketing is a means of communication between
customers and organization. Marketing focuses on
identifying, anticipating and satisfying customer
needs.

• It is an effective tool through which customer’s

desire are explored through advertising and
promotions.
• False marketing trends has brought negative
aspects in the social culture and created too much
materialism which is not in harmony with the
business ethic.

• A strong need arises and calls for how to change

the current marketing trend and introduce a new
technique which constitute marketing practices
based on Islamic ethic, and social culture.

• The objective of this paper is simply to suggest

marketing practices from an Islamic viewpoint.
• The first objective of this paper is to introduce
marketing rules and regulations based on the Holy
Quran and Islamic Shariah.

• The second objective to present a real case study

and examine the application of Islamic framework
in marketing management practices.
 MARKETING IN ISLAM
• At the beginning it is appropriate to make clear that
Islamic approach in the business is based on
spiritual belief. Successful tycoons should not
challenge these Islamic values irrespective of their
success in the business.

• Islam has developed a code of life dealing in all

aspects of life either business, economic or social
aspects that should be adhered to under all
circumstances.
Islam has laid down basic principles of business
strategies. Marketers must serve their goals within
the rules and regulations of Islamic Shariah as
outlined in the Holy Qur’an. Islam stressed fair
dealing in business. Unfair margin of profits in the
business is prohibited in Islam.
 MARKETING MIX ISSUES

In Islam, as in modern marketing textbooks,

four marketing mix issues have been identified
(Difference in practice and behavior not in theory):
1- Product
2- Price
3- Place and
4- Promotion
Product Decisions:
• The product which is being marketed should be
‘halal’ and meet all requirements of Islamic law.
• It is also vital for the processors to process those
products which are permissible in Islam and should
conform to the environment friendly standards.
• Islam forbids few commodities and items that are
harmful to the community or individual, Prophet
(pbuh) said:
“ Don’t cause damage, if so, it must be remedied”.
• It is an obligation of the manufacturers and
suppliers that they should provide real and correct
specifications of their products. Under no
circumstances the marketers hide any drawbacks
of their products. Each product must have detailed
information about its contents and ingredients as
well as dates of expirations.
(Abu Hanifah incident)
 Pricing Decisions:

• Pricing decisions should be formulated according to

Islamic concepts and regulations. Some of these can
be taken into considerations and should be avoided
:
• 1.. Maisir – means getting something easily or
getting profit without working hard for it.
2. Tatfif- means changing quality or quantity of
the product without changing price.
3. An-Najash: An increase in price by a buyer
unwilling to buy to induce others to buy.
4. To buy a commodity after it has been sold to
another person.
5. To receive farmers before entering town and buy
cheaply their products in order to sell highly.
Pricing Decisions - contd

6. Ihtikar: hoarding or monopolizing a specific

good or commodity thus creating a shortage
so that the price would be very high when they
sell.
7. Iktinaz – (Collecting and keeping gold and silver
and not spending them in the way of Allah.) The
Qur’an specifically warned those (who hoard
up gold and silver, and spend them not
in the way of Allah, announce unto
them a painful torment)
Pricing Decisions - contd

In Islam price the essential conditions of a sound self-

operating of price adjustments are as follows:

a. Prohibition of Monopoly:

It means exclusively control the quantity and price of

goods having intention to decrease supplies as a result
increase of the price of such goods. Monopoly (or
Ihtikar) is forbidden in Islam.
Pricing Decisions - contd

b. Prejudicial and Unreasonable Pricing:

Price should not be fixed to deceive buyer or

having intention to eliminate competitors.

c. Prohibition of Usury and Other Practices

The Holy Qur’an (2:278) clearly forbids

usury and discard it; and in (2:279) one can
take back the capital sum only: no excess.
Pricing Decisions - contd

Promotion Mix

Promotion means to introduce and present a

product to the customer. It includes advertising,
personal selling, publicity and sales promotion.
To promote any products it is necessary
to disclose all of its defects, if any.
Pricing Decisions - contd

Promotion Mix:

Exaggeration in marketing practices is not

allowed in Islam.

Stereotyping of women in advertising is also

objectionable in Islam. Advertising should be
in accordance with the Islamic points of
view. No fraud, no vulgarity, no lying or
deception ; no cheating are allowed throughout
the promotion campaign.
Regulations for Promotion:

The following are some of the regulations

when engaging into promotion activities:

- Be honest - truthful and free from

deception
- Do not offer any wrongful promise; or
promises you cannot keep.

- Do not use celebrities to deceive

customers.
MARKETING PRACTICES FROM AN ISLAMIC PERSPECTIVE

• National Biscuit & Confectionery Company (NBCC). NBCC produces

and markets biscuits and confectionaries. In 1987 its products
comprised of three product lines, a dry biscuits line, cream biscuits
line and hollow wafer line. This was followed up with 3 flat wafer lines
in 1990, 1992, and 1993.
• In 1994 the company launched major
diversification into the manufacturing of salted
Crisps. Concurrently, lines for the manufacturing of
pellet based snacks, extruded snacks and dip sticks
were added. Needless to say that all local
ingredients that make up the product are Halal.
Promotional Activities

• NBCC has been also using various conventional

tools of promotion, which adhere to basic ethical
principals of business. . The promotional tools can
generally be termed as Islamic with some
reservation (as will be seen below).
The case of a promotional campaign:

• NBCC launched the 'Educational Flippo' (a plastic

disc). NBCC launched a campaign in which
customers were urged to collect these 'flippo' discs
in an album containing five sheets for a total of
100 'flippo' discs. While this campaign was
successful, the promotion itself can be questioned
from an Islamic perspective, mainly on the
following grounds:
• 'Flippo' discs bear pictures or parts of a body and
pictures, which Islam has strong reservations
against it. This is also clearly in violation of Islamic
ethics and values.
• Another major concern has been that some
children use the disc in a game; a kind of gambling,
which is strongly forbidden by Islam.
• Children, their parents and other customers buy
the product not for its value, or use but to collect
these discs for the prizes.
CONCLUSION

• The purpose of this study was to outline marketing

management and suggest ideal practices from an
Islamic perspective. Based on the Holy Quran,
Islamic Traditions and Shariah Law, the paper
suggests a number of ideal marketing practices for
managing the decisions related to some elements of
the marketing mix namely: product, pricing and
promotion. A few suggestions have also been
provided to ensure conformity with Islam.