Transcript Marketing Mix Management - Faculty Personal Homepage

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.