FUNDAMENTALS OF ISLAMIC MARKETING

2022/2023Fundamentals of Islamic Marketing
(MKT 2623)
By Jun Juhaizi Juhari
JUN JUHAIZI JUHARI 1

CHAPTER ONE

An Introduction of Islamic Marketing

LEARNING OBJECTIVES:
1. Define the Islamic marketing.
2. Compare between conventional and Islamic marketing
3. Explain the principles governing Islamic ethics
4. Discuss the Islamic values in business
5. Comprehend the overview of Maqasid shariah

Here are some definitions of Islamic marketing:

Hussnain (2011) defines Islam as marketing:
“The process of identification and implementation of value maximization strategy
for the welfare of stakeholders in particular, and societies, in general, are governed
by the guidelines given in the Quran and Sunnah”.

Alom & Haque (2011) explains that Islam marketing can be defined as: “Processes and
strategies (Hikmah) fulfillment through products and services that are Halal (Tayyibat) by
mutual consent and welfare (Falah) of both parties that the buyer and seller for the purpose
of achieving the material and spiritual welfare in this world and hereafter”.

Abuznaid (2012) argues that Islam marketing can be defined as: “Wisdom satisfying customer
needs through good conduct in providing products and services that are halal, healthy, holy
and legitimate by mutual consent of sellers and buyers for the purpose of achieving the
material and spiritual well-being in this world and hereafter and make consumers aware of it
through the good behavior of ethical marketers and advertising”.

There are some keywords/mentioned core aspects of this definition:
a. Wisdom (Hikmah)

In Islam the word Hikmah very close to the Strategy (Alom and Haque, 2011).
b. Needs

Islamic marketing is based on two basic requirements as mentioned in the
Quran that the physiological needs of food, water and clothing and security
needs (QS, 20: 118-119; QS17: 29) while conventional marketing based on a
desire (Cooke et al.1992).

JUN JUHAIZI JUHARI 2

c. Muslim consumers
Is defined by consumption is not excessive, lifestyle and financial rules of the
Muslim faith; they are far from homogeneous (Kearney, 2006). Muslim
Consumers speak different languages, wear different styles of clothes and eat
different food, for example in Turkey, Pakistan, Bangladesh, Kurdistan,
Algeria, Morocco, Palestine and Saudi Arabia, the Gulf, etc. It is important to
note that not all Arabs are Muslims and not all Muslims are Arabs.

d. Market
Muslim market complies with the principles of Sharia in all sectors. There is a
religious viewpoint is received on this matter. For example, in Muslim countries
the product non-halal or products that do not comply with Islamic principles
that are sold in restaurants and hotels as alcohol and pork, some Muslim
consumers do not have a problem eating in the hotel and restaurant for what
they ordered and ate not contain pork or alcohol. While in many countries such
as Malaysia, the restaurant must be free from pork before Muslim consumers
will eat in it.

e. Good attitude
Good behavior is ethical behavior.

f. Halal (Tayyibat)
Products offered to contain virtue, pure, safe, lawful and profitable (QS 2; 172,
QS 2: 168). The word "Tayyibat" is mentioned eighteen times in the Qur'an.

g. Convenience
Fair and between buyers and sellers are free to choose without coercion
(QS4:29).

h. Welfare (Falah)
Success and well-being (QS 2: 201) and (Hadith). Sattar (1988), described
Falah as the achievement of prosperity in this world and Hereafter.

i. Ethical advertising
No action is misleading, deceptive, or unfair on advertising (QS 3:77).

JUN JUHAIZI JUHARI 3

Islamic Marketing Characteristics
In general, there are four characteristics that surround the marketing concept
in Islam, the religious, ethical, realistic, and humanistic (Sula and Kartajaya, 2006).
If one gives the four characteristics of the mind, one will get a good relationship
between the five pillars of Islam and the implementation of it.
a. Religious, Islam marketers must fully believe that Islamic law is the supreme

law should be used as guidelines only, perfect, and the source for all the
goodness
b. Ethical, spiritual increase in the Islamic marketing will establish Islamic ethics
in business transactions. One of the characteristics of Islamic marketers is full
of ethical considerations
c. Realistically, Islamic marketers should not be so "rigid" in Islamic marketing
practice, as long as it does not violate Islamic law. The content is more
important than appearance. However, it should be noted that being realistic does
not mean that in the case of "emergency", the Muslim marketer can do
something that violates the principles of Islamic law.
d. Humanistic, Islam as other religions, came in order to teach people the values
that can distinguish people from each other creatures that inhabit this world.
Therefore, one should be able to keep out of a desire that such inhuman greed.

JUN JUHAIZI JUHARI 4

▪ “…it is hard to find any contradictions between Islamic and conventional marketing
definition. The only difference is the assurance of Halal in accordance to Islamic law to the
goods and products” (Adnan, 2013).

▪ There are some conflict views on the differences between Islamic and conventional
marketing.

▪ Therefore, this section is to explore and learn more about the differences between Islamic
and marketing definitions.

a) Definition of Marketing
▪ The conventional or traditional marketing can be defined as a social and managerial

process by which individuals and groups obtain what they need and want through creating
and exchanging products and value with others (Kalthom, 2008). According to American
Marketing Association (2008), marketing is defined as “the activity, set of institutions, and
processes for creating, communicating, delivering, and exchanging offerings that have
value for customers, clients, partners and society at large”. Marketing involved the process
of planning and executing the conception, pricing, promotion and distribution of ideas,
goods and services to create exchanges that satisfy individual and organizational goals
(Kotler & Keller, 2009). The customer satisfaction can be maximized by completing the
marketing transaction with values, satisfaction and qualities of the products or service
involved to meet the needs and desire of customers (Ahmad, 2013).
▪ In conventional marketing, most of the definitions did not cover the total welfare of an
individual, a community, a society, and a state or the planet as a whole (Alom & Haque,
2011). Islamic marketing is defined as the process of identification and implementation of
strategies for the value maximization of the welfare of the stakeholders and society in
general governed by the guidelines given in the Quran and Sunnah (Hussnain, 2011).
According to Abuznaid (2012), Islamic marketing is the process of gaining wisdom.
Companies satisfy customers through the good conduct of marketing. They deliver Halal,
wholesome, pure and lawful products and services with the mutual consent of both seller
and buyer.
▪ In addition, according to Ahmad (2013), most of the conventional marketing definition fails
to fulfil the requirement of the Islamic marketing. Three things that cannot be found in
conventional marketing are the intention which rooted to Allah, applying Islamic
benchmark to any concepts throughout the exchange process and making marketing as
the most instrument to achieve Allah’s blessing. In Islamic marketing, the Islamic tasawwur
is treated as the core of Muslim action. With tasawwur, people will understand that in this

JUN JUHAIZI JUHARI 5

world, nothing can changed the statement of Allah S.W.T. as the Creator of human and
human is the creature (Adnan, 2013).

b) Objectives
▪ The final objective of conventional marketing is the consumer’s satisfaction as well as

the profits gained by the marketer (Ahmad, 2013) without any restrictions. It focused
more on getting customer satisfaction, maximizing choice and consumption (Yusniza
and Khalidah, 2012) but not to get Allah’s blessing. In other words, the main focus of a
business is satisfying customers for profit.
▪ In Islamic marketing, besides fulfilling consumers’ need and achieving companies’
goals, all related marketing practices such as planning, pricing, distribution, and
promoting the products must be accordance with the regulations of the Islamic Shariah
and Islamic traditions (Kalthom, 2008).
▪ The objective of Islamic marketing is to achieve not only the material but also the
spiritual well-being in the world here and hereafter. Even Islam acknowledge materials
wants and the joy of satisfaction but these are not the main purpose in life for Muslim
people. In Islamic marketing, the blessing of Allah is becoming the ultimate goals
(Husnain, 2011).

c) The Marketing Concept
▪ In general, marketing consist of several basic concepts which include the needs,

wants, demand, product, value, satisfaction, exchange, transaction, relationship and
finally market (Khalidah and Yusniza, 2009). There are various concepts of marketing
adopted by firms since 1869 to date. Began with the concepts of production, followed
by product, selling, marketing concepts and others. Those concepts mostly have been
discussed earlier under the topic of the evolution of marketing. The marketing concepts
change over time. When companies started to focus on religion as one important
element to be considered in marketing, here companies started to realize the
importance of the Islamic marketing concepts. The Islamic marketing concepts is
characterized by the spiritualistic, ethical, realistic and humanistic (Hejase et al, 2012).
▪ Basically, spiritualistic means that all businesses conducts must be in accordance with
the teaching of Al Quran and Sunnah. Islamic marketing forms Islamic ethics within the
business transaction. Here, all marketing activities must be done in ethical standards
set by Islamic teaching. Meanwhile, realistic in marketing means an opportunity for
creativity and the ability to create breakthroughs. It means that Muslim marketers must
be brave to differentiate themselves from any other marketers who partially use or do
not use Islamic principles in conducting business. Last but not least is humanistic. In
Islamic marketing, humanistic means that the effort to balance between market

JUN JUHAIZI JUHARI 6

demand and environmental preservation. With the characteristics of humanistic, it
teaches people the values that differentiate people from other creatures in this world
(Hejase et al, 2012).
▪ The Islamic marketing concept always start with the Islamic framework of Halal and
Haram. Halal refers to a code of conduct which is permitted by Shariah (Zainalabidin,
2008). Ahmad (2013) concluded that Islamic marketing is different from the
conventional marketing since it holds to Islamic tasawwur that consist of the three
elements of faith (iman), deeds (amal) and behaviour (akhlak) as the core in Muslim
actions. Islamic marketing defines every existence in the universe belongs to Allah
S.W.T. Islamic marketing is not limited only to man’s relationship with man
(Hablumminnas) but also concern on the relationship between human and the Creator
(Allah) (Habluminallah). In other word, Islam encourage equal emphasis on both
present life and the hereafter (Kalthom,2008).
▪ Ahmad (2013) also stated that in conventional marketing, people do believe that the
relationship of God and the universe including man are only temporary, the man have
absolute freedom in determining the direction of life and people put the life of the
world as the top priority. Due to this, for them, in business, there is no constraint of
permissible or not permissible goods or services. Here, buyers can choose any kind of
goods and services without any restrictions.
▪ In order to satisfy human needs, Islam recognizes trading, which involve the activities
of buying and selling. However, Islam does not allow people to acquire another
person’s asset or property through stealing, robbing, manipulation, cheating, bribery,
taking property by force and any other illegal means. Islamic marketing also
encourage people to provide accurate information and not hide any important
information that will lead to gharar that consist of negative elements such as deceit,
fraud, uncertainty, danger, risk and hazard that might lead to destruction or loss
(Yusniza and Azian, 2013). Moreover, Kalthom (2008) did emphasize the concept of
justice and equity. All of the marketing activities has to be done in a manner that is
prescribed in the Quran and Sunnah. While the functions and operating modes of the
conventional marketing is based on the principles of fully manmade. Without proper
business guidelines specifically in marketing can lead to the complication, trouble and
failure of the businesses (Samah, 2011).

JUN JUHAIZI JUHARI 7

THE SUMMARY OF COMPARISON BETWEEN
CONVENTIONAL MARKETING AND ISLAMIC MARKETING

No Aspect Conventional Marketing Islamic Marketing

Narrow and does not include the Broader Maximizes the value of the

The scope of total well-being of individuals, welfare of stakeholders and the

1 general public in
the definition communities and
accordance with the Quran and
the country as a whole
Hadith.

The concept Ethics and Islamic values in its
Non-value and not based on the activities

2 and basic
deity in its activities

philosophy

3 Marketers’ ethics Adaptive, situational, and Tied to Islamic ethical
conditional

The approach to Target sales Business partners is aligned
4

consumer

The perspective An opponent to be defeated Business partners and not an
5 opponent to be defeated.

of competitors

Marketing Advantage through customer Not only material gains alone but
6 satisfaction also spiritual gain

objectives

JUN JUHAIZI JUHARI 8

Islamic ethics are governed by the following principles:
Unity

Free will Iman (faith)

Justice for Khilafah
Adl. (trusteeship)

Balance

1. Unity
▪ It prohibits all forms of discrimination among employees, suppliers, buyers or any other
stakeholder on the basis of race, colour, sex or religion.
▪ People are equal partners, and each person is a brother or sister to the other.

2. Iman (faith)
▪ In Islam, faith or iman is the basic motivating factor for believer and it is determining
conscience.
▪ Business decisions are guided by iman which in practice means following Shariah law
and engaging in what is Halal or permitted and avoiding that which is Haram or
forbidden.

3. Khilafah (trusteeship)
▪ People are God’s trustees on the earth.
▪ For instance, resources which are God-given and for the benefit of all, must be
acquired lawfully and redistributed in the best interest of everyone.
▪ The rich and powerful are not the real owners of wealth, they are only trustees. They
must fulfilling the needs of the poor.

4. Balance
▪ Islam teaches Muslims to be moderate in all of their affairs.
▪ Profit is not the chief motive.
▪ Social good or the benefit of the society as a whole not profit should guide Muslim
entrepreneurs in their decisions.

5. Justice for Adl.
▪ Justice is a central theme in Islam and is required from all parties in all cases.
▪ Exploiting employees, abusing power, or using a monopoly to overcharge consumers
are all condemned.
▪ The commitment of Islam to justice and brotherhood demands that the Muslim society
takes care of the basic needs of the poor.

6. Free will
▪ People have the free will to guide their own lives as God’s trustees on earth.
▪ This free will though is directly linked to accountability, the more freedom a person has
the more accountable a person becomes.
▪ By implementing God’s rules Muslims do not lose their individuality, but they become
less selfish and more motivated to serve the wider public.

JUN JUHAIZI JUHARI 9

Islam has given detailed principles to guide and control the various economic aspects in the
society. The following are the Islamic values in business:

1) Prohibition of bribery
▪ According to the teachings of Islam, bribery is a form of corruption and is strongly
condemned.
▪ All, givers, takers and facilitators are strongly warned against engaging in this practice.

2) Prohibition of fraud and cheating
▪ Islam stresses the importance of honesty and warms sellers against exaggerating or
lying about their products or services.
▪ It is forbidden to gain property or wealth by fraud, deceit, theft, or other falsehoods.
▪ Sellers involved in fraud are committing a sin.

3) Prohibition of discrimination
▪ Islam considers all forms of discrimination unjust and opposes it in all aspects of life.
▪ No black person has superiority over a white person and no white person has superiority
over a black person.

4) Greater social responsibility
▪ An organization’s social responsibility in Islam emphasizes its responsibility in three
domains: towards its stakeholders, the natural environment, and the community.
▪ A business engaging the Muslim market is not just a profit-making machine, it is an
institution of the Muslim community and thus must abide by its rules or guidelines.

5) Prohibition of interest
▪ Islam prohibits all interest-based transactions, whether giving or receiving and whether
dealing with Muslims or non-Muslims.

6) Prohibition of certain earnings
▪ Islam prohibits making earnings from gambling, lotteries and the production, sale, and
distribution of alcohol.

7) Prohibition of hoarding
▪ Both money hoarding and goods hoarding are impermissible and there are those who
bury gold and silver and spend it not in the Way of Allah; announce unto them a most
grievous penalty.
▪ People should take only what they need, no more.

8) Prohibition of extravagance and waste
▪ A Muslim should be responsible in spending money.
▪ Extravagance and waste are strongly discouraged.

9) Payment of zakat
▪ Every Muslim who owns wealth, more than a certain amount to meet his or her needs,
must pay a fixed rate ( 2.5 per cent) of Zakat to those in need.
▪ Zakat is a method of narrowing the gap between the rich and the poor and of making
sure that the needs of the needy in the society are met.

10) Payment of charity
▪ Muslims are encouraged to give constantly in charity.

11) Cleanliness
▪ Cleanliness does not just apply to those areas of a business a customer sees. It includes
backstage operations, equipment, and storage areas as well.

JUN JUHAIZI JUHARI 10

▪ Shaykh Muhammad Al-Tahir Ibn Ashur, a great Islamic Scholar, defined Maqasid of the
Islamic law as the objectives or purposes behind the Islamic rulings.

▪ He explained the knowledge of Maqasid al-Shari'ah is important for mujtahids to not
only understand or interpret the texts of Shariah, but also to derive solutions to
contemporary problems faced by Muslims.

▪ The concept of Maqasid Shariah provides a clear guidance and framework to the
process of ijtihad in solving the issues conforming to the human interest while complying
with the will of God.

▪ Traditional classifications of Maqasid Shariah are divided into three according to the
‘levels of necessity’, these three categories are:
1) Necessities ( Daruriyat)
2) Needs ( Hajiyat)
3) Luxuries ( Tahsiniyat)

Classification of Maqasid Shariah

1) Necessities ( Daruriyat)

▪ Necessity are essential elements for human being.
▪ The absence of these elements may cause harm and damage to human life.
▪ The examples of necessities such as shelter, food, and clothes.
▪ The necessities are further classified by the scholars into five elements of preservations.
▪ The objective of Islamic rulings is mainly to protect these five elements from any harms. These

preservations are known as:
 Protection of Faith or religion (din)
 Protection of Life (nafs)
 Protection of Lineage (nasl)
 Protection of Intellect (‘aql)
 Protection of Property (mal)

▪ Some examples of acts that are related to the preservations of the above are defending Islam
against enemies’ attack (faith), build the hospital (lineage), provide education (Intellect), and
distribution of wealth in fairly manner through Zakat (property).

▪ These are the objectives which are must and basic for the establishment of welfare in this world
and the world hereafter in the sense that if they are ignored then the coherence and order
cannot be established and fasad (chaos and disorder) will prevail in this world and there will
be obvious loss in the world hereafter.

JUN JUHAIZI JUHARI 11

2) Needs ( Hajiyat)
▪ Needs are less essential for human life compared to daruriyat.
▪ These are requirements for human being to live without facing difficulties.
▪ However, the lack of any of these needs is not a matter of life and death, especially on an
individual basis.
▪ Examples of needs are marriage, communication tools, healthy food, and means of
transportation. Islam encourages and regulates these needs.

3) Luxuries ( Tahsiniyat)
▪ Luxuries are complementary and desirable factors that give perfection and additional
values to human life.
▪ Islam encourages us to achieve these purposes and to have a better life.
▪ Nevertheless, Islam teaches us to pursue these goals in correct manners.
▪ The Examples of luxuries are branded outfit, luxury car, bungalows etc.

Baker Ahmad Alserhan, (2015), The Principles of Islamic Marketing, 2nd edition. New York:
Routledge Taylor & Francis Group.

T. C. Melewar, Sharifah Faridah Syed Alwi & Nor Othman. (2018). Islamic Marketing and
Branding: Theory and Practice. United Kingdom: Taylor & Francis Group.

Suhaily Md Shamsudin, Siti Syuhada Abd Rahman. (2014). The Differences Between Islamic
Marketing And Conventional. Proceeding of the 1st International Conference on
Management and Muamalah 2014 (1st ICoMM)

https://www.kfh.com.my/malaysia/personal/about-us/islamic-banking-services/maqasid-
shariah.html#luxuriestahsiniyat

JUN JUHAIZI JUHARI 12

CHAPTER TWO

Overview On Muslim Market

LEARNING OBJECTIVES:
1. Define the Muslim organization
2. Describe the Islamic market
3. Explain the Muslim consumer
4. Describe the architecture of Islamic brands
5. Explain the Islamic products and services categories

▪ The Organisation of Islamic Cooperation (OIC) is an international organization founded in
1969, consisting of 57 member states, with a collective population of over 1.8 billion as of
2015 with 53 countries being Muslim-majority countries.

▪ The organisation states that it is "the collective voice of the Muslim world" and works to
"safeguard and protect the interests of the Muslim world in the spirit of promoting
international peace and harmony.

▪ the OIC aims to preserve Islamic social and economic values; promote solidarity amongst
member states; increase cooperation in social, economic, cultural, scientific, and political
areas; uphold international peace and security; and advance education, particularly in
the fields of science and technology.

JUN JUHAIZI JUHARI 13

JUN JUHAIZI JUHARI 14

JUN JUHAIZI JUHARI 15

The market (Souq)
▪ In Arabic, the word SOUQ means the place where selling and sales take place. A
concept has been defined during the life of Prophet Mohammad as ‘any place where
a sale occurs’; it is tied to the transaction itself not to the place.
▪ Thus, in Islam, a market is held wherever and whenever an exchange takes place.
▪ Islam give special attention to the market to urges people to trade and gains. The
shariah clearly urges believers to take trade as a profession and to make money out of
it. ‘O ye who believe! Squander not your wealth among in vanity, except it be a trade
by mutual consent’ (Quran 4:29)

Islamic Market
▪ Islamic Market is where the target consumer is a Muslim. It also defined as taking
account Muslim majorities, minorities, and non-Muslim consumers of Islamic products.
▪ Islamic market can be divided into 3:
1) Primary Islamic Market :
- where the majority of the population of country/region follows the religion of
Islam.
- These countries are members of the Organization of Islamic Conference (OIC).
- The majority of consumers are Muslims and the product sold are HALAL.

JUN JUHAIZI JUHARI 16

2) Secondary Islamic Market:
- composed of significant Muslim minorities most countries of the world.
- The word halal in these markets is sometimes overused as a marketing tools.
- Example : a street seller in the UK that
read Halal Miswak. Miswak is Halal by
nature.

3) Emerging Islamic Market:
- rapidly evolving market for Islamic
products of the adherents of other
religions in non-Muslims countries.
- This growing segment represents
consumers who have been exposed to Halal products in their home country.
- Many of the customers of Halal Shops in Western Countries are not Muslims

Non-Islamic markets
▪ Is where the target consumers adhere to religions other than Islam.
▪ This definition includes in addition to countries where the majority of the population is
not Muslim, non-Muslim minorities in Islamic countries.
▪ Non-Islamic minorities’ markets are sometimes like Islamic markets in their consumption
patterns.
▪ Christian minorities in the Arab world a good example.
▪ All of them consume Halal products.

JUN JUHAIZI JUHARI 17

▪ In an Islamic market, religious teachings clearly influence the choices of Muslims.
▪ The concept of Halal affects every single aspect of a Muslim’s life. It affects the decisions

of what to buy and what to sell, the terms, time and place of the sale, the promotional
activities and with whom to transact.
▪ Muslim consumers are defined by the dietary, lifestyle and financial rules of the Islamic
faith, they are far from homogeneous (Kearney, 2006).
▪ Muslim consumers speak different languages, wear different styles of clothing and eat
different foods. i.e. the Turkish, Pakistani, Bangladesh, Kurdish, Algerian, Moroccan,
Palestinians and Saudis etc. It is important to note, however, that not all Arabs are Muslims
and not all Muslims Arabs.
▪ A Muslim market abides by Sharia principles in all sectors. There are acceptable religious
viewpoints regarding this. For example, in Muslim countries non-Halal products or products
that do not abide by Sharia principles are sold in restaurants and hotels like alcohol and
pork. Muslim customers have no problem eating in hotels and restaurants in non-Muslim
countries as long as what they eat has no pork or alcohol. While in many countries in the
Muslim world restaurants must be pork free if they need to attract Muslim customers.
▪ The principles that guide Muslim consumers as mentioned in the Holy Quran and Al hadith
are:
a. Avoid consumption of harmful goods. The Quran says, “O you who have believed,

indeed, intoxicants, gambling, sacrificing on stone alters to other than Allah, and
divining arrows are but defilement from the work of Satan, so avoid it that you may
be successful” (Al-Ma’idah: 90).
b. Be moderate in consumption. The Quran urges its believers to be moderate in their
spending by saying” And do not make your hand [as] chained to your neck or
extend it completely and thereby become blamed and insolvent (Alisraa: 29).
c. Prohibition on stinginess and scarcity. The Quran says” And, also for, those who were
settled in Al-Madinah and adopted the faith before them. They love those who
emigrated to them and find not any want in their breasts of what the emigrants were
given but give them preference over themselves, even though they are in privation.
And whoever is protected from the stinginess of his soul - it is those who will be the
successful (Alhashr: 9)
d. Prohibitions of extravagance and waste in consumption. The Quran says “O children
of Adam, take your adornment at every masjid, and eat and drink, but be not
excessive. Indeed, He likes not those who commit excess (Al araf: 31).
e. Interdicting a mentally retarded person by his (Legal guardian), which means
prohibiting someone from using his money due to financial and other obligations to

JUN JUHAIZI JUHARI 18

others. Otherwise, withholding the money of bankrupts to use it for the fulfillment of
obligations to others. This principle aims to protect people’s rights which will help in
the end in maintaining harmony within the community. The Quran says “And do not
give the weak-minded your property, which Allah has made a means of sustenance
for you but provide for them with it and clothe them and speak to them words of
appropriate kindness (Alnissaa:5).

Islamic Countries

▪ Islamic countries are those countries considered to be Islamic due to the fact that they
have a Muslim-majority population—for example, Malaysia, Saudi Arabia, Pakistan,
Bangladesh, and Oman.

▪ Some non-Islamic countries have Islamic-minority populations, such as India, China, Russia
and France.

▪ In the context of branding and marketing, these images are extremely important as they
are often associated with the companies, products, and services that emanate from the
country, and the country-of-origin effect is well known to be capable of helping or
hindering a brand’s success.

▪ For example, a product endorsed with the phrase “Made in Japan” may have a much
easier time gaining acceptance as possessing the quality attribute, as opposed to one
that bears the label “Made in China.” This country-of-origin or nation brand effect can be
so strong that many countries have now embarked on branding exercises to polish up
their national images.
JUN JUHAIZI JUHARI 19

Islamic Organizations

▪ Islamic organizations are those institutions that are Islamic and may be based in one
Islamic country, but which belong to many Islamic countries.

▪ These brands serve the Islamic world and are usually based in one country, providing
products—but usually services—to many Islamic countries.

▪ Islamic organizations are those such as the Organization of the Islamic Conference
(OIC), a group of 57 member states, headquartered in Jeddah, Saudi Arabia.

▪ Another example is the Islamic Financial Services Board (IFSB), “an international
standard-setting organization that promotes and enhances the soundness and stability
of the Islamic financial services industry by issuing global prudential standards and
guiding principles for the industry, broadly defined to include banking, capital markets
and insurance sectors.

▪ The IFSB also conducts research and coordinates initiatives on industry-related issues,
as well as organises roundtables, seminars and conferences for regulators and industry
stakeholders.

Islamic Companies

▪ It refers to companies and brands that originate from Muslims-majority and Muslim-
minority countries.

▪ In countries with Muslim-majority populations such as Indonesia, Malaysia, and the
Middle Eastern countries consist of 2 types of companies: Non-Islamic and Islamic.
i. Non-Islamic Company – Company that is not owned by Muslim shareholders but
operate is Muslim countries and market and offer their products and services to
Muslim markets such as YTL Group (Malaysia).
ii. Islamic Company – Owned by indigenous Muslim, or on some cases by
governments such as Petronas (Malaysia).

▪ An Islamic company can be understood in different ways according to:
1) Islamic company by product
▪ producing a Shariah-compliant products
▪ Companies that specialize in the production or distribution of products that
comply with the teachings of Islam.
▪ Example: Halal are classified as Islamic companies.

2) Islamic company by location
▪ A company located in an Islamic country
▪ Companies whose main business operations are located in Muslim countries
are also considered as Islamic companies regardless of their type of ownership
or customer base, which could be a mixture of both Islamic and non-Islamic
customers.
▪ Also in these Muslim countries we find Islamic companies that are owned by
indigenous Muslims, or in some cases by governments.

JUN JUHAIZI JUHARI 20

▪ They may offer Islamic products (such as CIMB Bank in Malaysia) or general
products—as is the case with Petronas, the Malaysian national oil company.

▪ Similarly, Zain from Kuwait offers general telecommunications services to the
Middle East and North Africa, and Zam Zam Cola is an example of an Islamic-
branded product from Iran.

3) Islamic company by ownership
▪ A company owned by Muslims
▪ Companies owned by Muslim shareholders are classified sometimes as Islamic
companies.
▪ They may offer Islamic products (such as CIMB Bank in Malaysia) or general
products—as is the case with Petronas, the Malaysian national oil company.
▪ Similarly, Zain from Kuwait offers general telecommunications services to the
Middle East and North Africa, and Zam Zam Cola is an example of an Islamic-
branded product from Iran.

4) Islamic company by customer
▪ Companies producing for Muslim consumers.
▪ Companies that produce to capitalize on and meet the needs of Muslim
consumers, regardless of the location of these consumers, or the location of
the companies themselves and their types of ownership are also classifies as
Islamic.

The figure shows us that there can be a variety of sources for Islamic brands, both those
specifically aimed at Muslims and those that are not, and generated by Islamic countries and
companies, or not. This wide variety of brand sources creates several opportunities for Islamic
branding and marketing.

JUN JUHAIZI JUHARI 21

Implications for Marketers

▪ In the architecture described above, we can see two distinct ways of branding and
marketing Islamic products and services.
1) First, companies can provide specifically designed and
developed Islamic brands that are not intended for non-
Islamic audiences, although they could purchase them.
Mecca Cola and the Burquini (Islamic swimsuit for women)
would be examples in this dimension.
2) Second, they can develop and market branded offerings that
are conventional in nature but modified to suit Islamic audiences.
The modifications may be merely in terms of brand communications
and connected via these to Islamic values, as is the case with Zain’s
telecommunications services; or they may be in the way the product is made, ensuring
a different and acceptable formula for consumption. Nestlé’s halal products would be
an example of the latter.
3) A more fundamental third option is for a foreign company to create an Islamic
subsidiary to cater strictly for Muslim audiences, as Standard Chartered Bank has done
with its Standard Chartered Saadiq Bank. We can see that there are various ways of
dealing with the marketing issues, and there are many opportunities for many
companies to reach both Islamic and non-Islamic audiences.

JUN JUHAIZI JUHARI 22

What is Islamic product?

▪ Products in Islam must not cause any harm or dullness to the mind, must be asset backed
and deliverable, must identify extra–cost added features that might materially change the
product or service impact on the buyers’ purchase decision. All obligations should be
discharged in good faith and should be based on principles of justice, fairness and equity.

▪ Most Muslims use these sources to make decisions about their everyday consumption. Only
these sources can be used to attest that some goods are allowed for Muslim consumption,
thus “Halal”, and some others are not Halal or forbidden.

▪ Consumer products could become Halal if the raw materials used in producing them are
Halal and the production process is compatible with Islamic way.

▪ According to Islamic Council of Victoria, Australia (ICV), in general every food is considered
Halal in Islam unless it is specially prohibited by the Qur’an or the Hadith.

▪ By official definition, Halal foods are those that are:
a) Free from any component that Muslims are prohibited from consuming according to
Islamic law (Shariah).
b) Processed, made, produced, manufactured and/or stored using utensils, equipment
and/or machinery that have been cleansed according to Islamic law.

What are the Islamic product and service categories?

Alserhan (2010b) suggested the following categories of Halal goods:

1) Food

2) Lifestyle

3) Services

JUN JUHAIZI JUHARI 23

1) Halal food

➢ The Quran clearly states foods that are prohibited, hence not Halal.
“He has forbidden you only dead animals, and blood, and the
swine, and that which is slaughtered as a sacrifice for other than
God” (Quran 2:173).

➢ In the Quran, reasons have been given for forbidding some
categories of food e.g. swine flesh and not for others: “for that surely is impure” (Quran 6:
145).

➢ ICV Australia interprets from the Shariah that all foods are considered Halal except the
following (which are haram):
• Alcoholic drinks and intoxicants
• Non-Halal animal fat
• Enzymes* (microbial enzymes are permissible)
• Gelatine* – from non-Halal source (fish gelatine is Halal)
• L-cysteine (if from human hair)
• Lard
• Lipase* (only animal lipase need be avoided)
• Non-Halal animal shortening
• Pork, bacon/ham and anything from pigs
• Unspecified meat broth
• Rennet* (all forms should be avoided except for plant/microbial/
• synthetic – rennet obtained from Halal slaughtered animal is
• permissible)
• Stock (a blend of mix species broth or meat stock)
▪ Tallow (non-Halal species)
▪ Carnivorous animals, birds of prey and certain other animal
▪ Foods contaminated with any of the above products

➢ Garbade et al. (2013) emphasized the need for a Halal integrity network support for Halal
food which consists in: (1) Halal logistics, (2) Halal network, and (3) Halal certification
bodies (Tieman, 2015).

JUN JUHAIZI JUHARI 24

2) Halal lifestyle

▪ According to Kucukemiroglu (1999, p. 473), it refers to “(1) the way
people spend their time, (2) what interests they have and what
importance they place on their immediate surroundings (3) their view
of themselves and the world around them and (4) some of their basic
demographics characteristics”.

▪ According to Muslimlifestyle.co.uk (2015), for Muslims across the world, the preference to
buy in accordance to their faith and Islamic values has grown considerably in the last 10
years.

▪ With Halal food and Islamic Finance leading the way, the modern discerning Muslim
consumer seeks select products and services that are socially conscious, ethically fair and
fit their way of life.

▪ Since Islam is a code of life, it requires its followers to lead their lives according to its
teachings and guidelines. From social affairs to travel to entertainment, a set code of
conduct is to be followed when availing a service or buying a product.

▪ There are Muslim consumer groups and Islamic councils that provide guidance in this
regard.

▪ They generally list the products and services, both food and non-food products, on their
website with the explanation as to why they are not Halal or if they are doubtful
(Mashbooh).

▪ Muslim consumers can obtain information and seek guidance from these councils from
personal care products to medicines. In Muslim countries, Ministries of Religious Affairs
provide such services.

3) Services

▪ The Quran refers also to economic and financial issues where trade is
regulated according to Shariah, e.g. trade of forbidden products is not
permissible e.g. pork and alcohol as well as the contract concerning the
supply of these good (The Islamic Financial Services in the United Kingdom).

▪ The following financial goods are enumerated: personal accounts, personal finance, home
finance, Islamic insurance or Takaful, investment and wealth management, Islamic bond
or Sukuk and business finance.

JUN JUHAIZI JUHARI 25

Abuznaid, S. (2012). Islamic Marketing : Addressing the Muslim market. An - Najah Univ. J. Res.
(Humanities). Vol. 26(6).

Abuznaid, S. (2012). Islamic Marketing : Addressing the Muslim market. An - Najah Univ. J. Res.
(Humanities). Vol. 26(6).

Abuznaid, S. A. (2020). Islamic Marketing and Muslim Consumers' Behaviour. Asian Journal of
Social Science Studies; Vol.5, No,1.

Alwi, T. M. (2018). Islamic Marketing and Branding : Theory and Practice. London and New
York: Routledge Taylors and Francis Group.

Baker Ahmad Alserhan, (2015), The Principles of Islamic Marketing, 2nd edition. New York:
Routledge Taylor & Francis Group.

T. C. Melewar, Sharifah Faridah Syed Alwi & Nor Othman. (2018). Islamic Marketing and
Branding: Theory and Practice. United Kingdom: Taylor & Francis Group.

JUN JUHAIZI JUHARI 26

CHAPTER THREEE

Islamic Product (Tayyibat)

LEARNING OBJECTIVES:
1. Differentiate between Islamic product and conventional product
2. Describe the Islamic product hierarchy.
3. Explain the Islamic principles governing halal and haram products

▪ In conventional marketing, a Product is defined as a good or service that most closely
meets the requirements of a particular market or segment and yields enough profit to
justify its continued existence ( Businessdictionary 2010).

▪ In Islamic perspective, a product is called as TAYYIBAT that is governed by Shariah,
Maqasid (aims). It refers to goods and services that are Shariah-compliant. It is good in
itself and its doesn’t imply bad. It describes everything that senses enjoy. Products is
associated with values and ethics.

▪ The word Tayyibat means beauty, purity, physical and spiritual, cleanliness and
attractiveness and it is usually use along with the word Rizq (sustenance).

▪ A land is Taiyyibah if it is good for plantation.
▪ Wind is Taiyyibah if it is soft and gentle.
▪ A meal is Taiyyibah if it is Halal.
▪ A woman is Taiyyibah if she is righteous and honourable.

JUN JUHAIZI JUHARI 27

Lawful or Tayyibat products have been classified by Islamic scholars into four different levels as
below:

1) Dharuriyyat (necessities)
2) Hajiyyat ( needs)
3) Kamaliyyat (improvements)
4) Tarafiyyat (extravagances)

DHARURIYYAT OR NECESSITIES
• Basic foods and drink, clothing, basic transportation, medication and health services,
literacy, security,etc
• Within an Islamic economic system, these products are given priority.

HAJIYYAT OR NEEDS
• These correspondence to basic products as stated previously but differ in quality,
amount, and availability.
• It is the religious responsibility of the people themselves to move higher up the
hierarchy.
• Example product: better food, higher quality clothing, a larger home, home
appliances, suitable public transportation, etc.
JUN JUHAIZI JUHARI 28

KAMALIYYAT OR IMPRIVEMENT

• It involves the satisfaction of the five pillars of life using products of higher order.
• Example: owning beautiful house in upscale area, private transportation, expensive

schooling.
• The brand name becomes much more significant in products adoption and use.
• It is his religious duty to show and demonstrate the bounties that Allah has bestowed

on him by eating well, dressing beautifully and humbly enjoying the blessings of Allah.

TARAFIYYAT (EXTRAVAGANCE)

• The tipping point from improvement and into extravagancies get closer with each
extra purchase that cannot be justified from a religious perspective.

• The point that Producers should disassociate themselves from because the description
of consumption beyond it enters the forbidden zone of tarafiyyat.

As a general rule, producers should carefully consider the following guidelines when prioritizing
what to produce:

1. The importance of these products in strengthening faith among Muslims.
2. Their importance in maintain social security
3. Their importance in the preservation of physical and mental health
4. Their role in supporting society, through job creation for example.

The importance of Their importance in Their importance in
these products in maintaining social the preservation of
strengthening faith physical and mental
among Muslims security
health

Their role in
supporting society,
through job creation

for example.

JUN JUHAIZI JUHARI 29

Below Are the Islamic principle governing halal and haram:
1) Permissibility is the rule; prohibition is the exception.
2) To permit and to prohibit is the right of Allah.
3) Prohibiting the Halal and permitting the Haram is wrongdoing.
4) The prohibition of things is due to their impurity and harmfulness
5) What is Halal is sufficient, while what is Haram is superfluous.
6) Whatever is conducive to the Haram is itself Haram.
7) Falsely representing the Haram as Halal is prohibited.
8) Good intentions do not make the Haram acceptable.
9) Doubtful things are to be avoided.
10) The Haram is prohibited to everyone alike.
11) Necessity dictates exceptions

In general, Haram products can be summarized as below:
1) Dead animals and their products.
2) Pig product.
3) All intoxicating products.
4) Gold and silverware.
5) Silk and gold for men.
6) Riba, or charging interest on lending money

Baker Ahmad Alserhan, (2015), The Principles of Islamic Marketing, 2nd edition. New York:
Routledge Taylor & Francis Group.

T. C. Melewar, Sharifah Faridah Syed Alwi & Nor Othman. (2018). Islamic Marketing and
Branding: Theory and Practice. United Kingdom: Taylor & Francis Group

Mohd. Shuhaimi bin Haji Ishak & Osman Chuah Abdullah. (2012). Islamic Perspective on
Marketing Mix. International Journal Of Business And Management Studies, 127.

JUN JUHAIZI JUHARI 30

CHAPTER FOUR

Islamic Pricing

LEARNING OBJECTIVES:
1. Explain the role of market in setting prices
2. Discuss the sellers’ right to set prices
3. Discuss the consumers’ right to acquire necessities
4. Explain how pricing as covenant between the buyer and seller
5. Describe how the pricing as shared responsibility between buyers and sellers

This chapter provides timeless guidelines for setting pricing strategies, an approach that is in
line with the core teachings of Islam.

These guidelines could be used by marketers to develop pricing strategies that suit their
particular market circumstances and at the same time, comply with the aims of the Shariah
which are supposed to ultimately lead to establishing a Godly planet that is governed by
equality, peace, tranquility and prosperity.

What is Islamic price?

▪ Price is the amount of money charged for a product and service, of the sum of the values
that consumers exchange for the benefits of having or using the product/services.

▪ The welfare of man is one of the objectives of trading in Islam. The price, especially of the
essential goods, food and drinks, clothing, and housing determines a just distribution for all
the people.

▪ Manipulating prices and hoarding to create a high price are not in line with Islam. Hoarding
to make huge profit is not allowed, especially for essential food.

▪ It should be clear that in Islam taking into account buyers' concerns is not less important
than taking into account sellers' concerns. In Islam Allah is the Pricer.

▪ Prophet Mohammad (PBUH) said in Hadith “Allah is the Pricer; Allah provides the wealth
and withholds it, and I hope to meet Allah when there are no complaints that I have been
unjust to money or blood”.

▪ However, when retailers and merchants set unfair prices, it is essential in Islam that the ruler
(governor) should intervene for the sake of inhabitants and to forbid monopoly

JUN JUHAIZI JUHARI 31

THE MARKET AS A PRICE-SETTING MECHANISM

▪ The Islamic teachings stressed that the trade is a welcome activity.
▪ All traders and consumers should be allowed to engage in free exchange.
▪ In principle, Islamic market should be free to respond to the market forces operating within

it.
▪ When Prophet Mohammad was asked to set price, he responded: 'I will not such a

precedent, let the people carry on with their activities and benefit mutually’.
▪ This Hadith clarifies that unnecessary interference in the freedom of individuals is

considered an injustice either from government, private institution or individual.
▪ However, if hoarding and manipulation of prices, public interest takes precedence over

the freedom of the parties behind the interference, price shall be control by Mustahib
(market supervisor).
▪ In Malaysian case it is by the government, such as Kementerian Perdagangan dan Hal
Ehwal Dalam Negeri (KPDNHEP).
▪ If the price control results in the sale of goods at an unacceptable price that denies traders
profit, it become Haram.
▪ If the price control lead to equity in the market, than it is Halal.
▪ If the price control results in the sale of goods at an unacceptable price that denies traders
the reasonable profit permitted by Allah, interference and price control becomes HARAM.
▪ If, on the other hand, price control leads to equity in the market,e.g by making sellers
accept a price equal to that set by other comparable products, then the control is HALAL.
▪ If a product was being sold without any wrong-doing or unethical market practices but
the price rose due to uncontrollable factors such as scarcity then, price control, if
practiced, would need to be done in a way that doesn’t deny traders their reward for
bringing this product into the market.
▪ Price control is most likely to take place when the well-being of the society is put at risk
and basic products such as education, medicine, food, clothes and shelter are most likely
to be subject to such a control.
▪ For example, cashew nuts, which are considered mostly luxury or extravagance products,
are more likely to be 100 percent subject to market forces while bread, sugar, rice and
other basic sustenance products will be subject to be more monitoring and price controls.
▪ This difference between products that are more or less likely to be subject to price controls
has significant implications for companies working within the Islamic markets since it
affects their margins and mark-ups and their promotions practices.

JUN JUHAIZI JUHARI 32

▪ Market forces are free to dominate only until the ‘freedom’ of the consumer is put at risk,
for example, jeopardizing the consumers’ right to healthy food, suitable medication or
proper education.

▪ Companies should be aware that their ability to manoeuvre (operate) within this market
is subject to the products they sell and to the type of their operations, e.g if they operate
at the high end of the market at the Tarafiyyat or extravagancies level, they will most
likely to be free to set their prices but if they operate at the basic products levels such as
those mentioned above then there is always a possibility of restrictions on operations
and limits on setting prices.

▪ Within the Islamic market, the concept of freedom including the freedom to set prices can
be described as responsible freedom.

▪ A free market assumes that the power of buyers is equal to that of sellers thus creating
market balance, which could not be further from the truth since there are very few
examples in the history business on this planet when buyer was actually able as a mass to
take action; they are usually left at the mercy of traders whose objectives is mainly to
profit.

▪ In conclusion, responsible freedom in Islam, as opposed to the freedom granted to traders
in a free market, translates into responsible pricing where a seller’s right to make a profit
does not affect the buyer’s right to a decent life.

JUN JUHAIZI JUHARI 33

▪ Three terms are used in the Quran to describe transaction between people
themselves and between people and Allah:
1) Mithaq (covenant)
2) Ahid (also covenant)
3) Aqid ( contract, the plural is Auqood)

▪ In Islam, all Shariah-compliant transactions are covenants approved by God and
must be honoured by all those who agreed to their terms.

▪ Buyer and seller do not transact with each other, they transact with God.
▪ Allah becomes the first party to the exchange, the second party- the seller or the

buyer is obliged more than ever to purify all aspects of that exchange and endeavor
to the best of his ability as a human being to please Allah.
▪ The exchange must exercise and embody qualities that are commonly overlooked
among traditional buyers and sellers. It includes generosity, kindness, eagerness to
help others gain from the dealing and easy dealing.
▪ All parties to the exchange are required to make sure that they all benefit, it would
be un-Islamic for anyone of them to gain while knowing that another will lose.
▪ It is a must in Islam that such knowledge is shared and all that parties are informed
about all matters that might affect their decision to engage in the exchange.

JUN JUHAIZI JUHARI 34

▪ Islam teach ‘One of you will not be a believer until he likes for his brother what he likes
for himself’.(Prophet Mohammad). It commands both buyers and sellers to have
compassion for each other.

▪ Seller must think of himself as a buyer and then determine what equitable price he
would be willing to pay for the product, bearing in minds all of the cost.

▪ The buyers also should determine an equitable price he would be setting for the
product.

▪ Both the buyer and seller must also willing to engage in a win-win exchange were the
buyer allows the seller to make sufficient gains and the seller allows the buyer to acquire
the desired product without being burdened by too high a price or total costs.

▪ Sellers’ price will no longer be seen as exploitive, and consumers will no felt as the victim
of exploitation.

Businesses operating in Muslim markets need to pay special attention to how they set prices
and in what price levels to operate. They must:

1) Demonstrate and create the awareness that their prices are fair to them, to consumers
and to the world. The prices must not lead to the depletion of natural resources or result
in ruination in the earth such as pollution, extravagant consumption patterns, moral
degradation and so on.

2) Avoid excessive profit margins, since these could be interpreted as unfair or greedy,
two traits strongly condemned in Islam.

3) Since Muslim markets, like all other markets, are composed of consumers with varying
purchasing powers, a company could build good will by providing high-quality
products at affordable prices to the less advantaged among these consumers.

4) Consumers in the Muslim market are weary of the prevalent- but not necessarily Islamic
– bargaining nature of these markets.

JUN JUHAIZI JUHARI 35

Baker Ahmad Alserhan, (2015), The Principles of Islamic Marketing, 2nd edition. New York:
Routledge Taylor & Francis Group.

T. C. Melewar, Sharifah Faridah Syed Alwi & Nor Othman. (2018). Islamic Marketing and
Branding: Theory and Practice. United Kingdom: Taylor & Francis Group.

Mohd. Shuhaimi bin Haji Ishak & Osman Chuah Abdullah. (2012). Islamic Perspective on
Marketing Mix. International Journal Of Business And Management Studies, 126.

JUN JUHAIZI JUHARI 36

CHAPTER FIVE

Islamic Promotions

LEARNING OBJECTIVES:
1. Explain the principles guiding promotions within an Islamic context
2. Discuss the importance of promotion as promises.
3. Describe the Islamic ethics in marketing campaign.

INTRODUCTION

▪ Marketing communication about goods and services are not intentionally
deceptive or misleading. In Islam, sellers and buyers are accountable to Allah.

▪ Both should be honest and fair in their marketing activities. In the promotion of
products, there should be no room to cover up promotional behavior or hide any
defect in the products.

▪ All forms and shapes of false assertion, overpraising products and attributing to them
qualities which they don’t possess, unfounded accusations and false testimony are
condemned.

▪ (Quran 33:58; 58:17-19). It is not permissible to over praise a product or service or
exaggerate about them. Swearing in the name of Allah in order to promote
products and persuade buyers to purchase the goods is not just not allowed but l
deprive God’s blessings. Prophet Mohammad (PBH) added”, the swearing by the
seller may persuade the buyer to purchase the goods but that will be deprived of
God’s blessings”. The Quran states "Those who purchase the small gain at the cost
of Allah’s covenant and their oaths (they have no portion in the hereafter) (Quran
3:77).

JUN JUHAIZI JUHARI 37

THE PRINCIPLES GUIDING PROMOTIONS WITHIN AN ISLAMIC
CONTEXT

▪ Marketers must be able to demonstrate that they are honest, intend to deliver on
their promises, that their promises are realistic and that what is being offered is
Shariah-compliant.

▪ A Shariah-compliant offer is one that fulfills the following conditions:
1) The good or service on offer must in itself be Halal
2) It must be delivered through a Halal supply chain
3) If a salesperson knows that the product is being bought for purposes that are not
permissible under Shariah then that salesperson is religiously held accountable not only
for selling it but sometimes for advertising, it in the first place
4) It must be advertised using Shariah-compliant means
5) Customers must be fully informed of what they are buying, nothing that could affect
their decisions is to be concealed from them.

PRINCIPLES GUIDELINES OF ISLAMIC PROMOTION

Islamic ethical framework is built on several rules / guidelines including:

1) Rejection of high-pressure manipulation or misleading sales tactics.
▪ To use models with pretty hair to give the impression that their hair is looking good
because of the shampoo they are advertising is deception according to Islam.
▪ Exploiting the basic instinct of consumers with a view to gain profits and greater
market share is not an activity a Muslim marketer will engage in.

2) Avoidance of sales promotions that use deception.
▪ To use healthy children in advertisement directed at other children when
promoting potentially harmful products such as fast foods, fizzy drinks, unhealthy
snacks and other products to give the false impression that their good health is a
result of consuming these products, or to hint to unsuspecting parents that allowing
kids to consume them is good parenting is Haram.

3) Avoidance of promoting products that are considered Haram.
▪ There is no such thing as an Islamic promotion for alcohol, pork, sex, music,
narcotics, or intoxicants.

4) Avoidance of using certain appeals such as sexual, emotional, fear and so on.
▪ For example, the common practice of using women in swimsuits to promote cars
in car shows in Western culture is totally denounced in Islam.

JUN JUHAIZI JUHARI 38

5) Advocating consumption as a form of worship.
▪ Allah loves to see the signs of His blessings on his servant (Hadith).
▪ Muslims are commanded to show that Allah has provided them.

6) Avoidance of the provocation of desires and acknowledging that certain desires will
never be fulfilled regardless of one’s wealth.
▪ If the son of Adam had money equal to a valley, then he will wish for another similar
to it, for nothing can satisfy the eye of Adam’s son except dust.

7) Advocating moderation in consumption.
▪ Promotions must not encourage extravagance or over-consumption.

8) Disclosure and transparency.
▪ A customer must be informed of what is getting.
▪ Marketers must disclose all faults in their goods, whether obvious or hidden.

9) Avoidance of promotions that could lead to the long-term mental of physical
deterioration or contribute to the dullness of the mind.

10) Excessive use of fantasy, the use of suggestive language and behaviour and
stereotyping of women in advertising as objects to lure and attract customers that
Muslim marketer will avoid.

THE IMPORTANCE OF PROMOTION AS PROMISES

▪ Promotions are promises of hope and fulfilment of desires.
▪ A promise is an undertaking or assurance given by one person to another agreeing or

guaranteeing to do or give something or do not to do or give something in the future.
▪ These promises are made by sellers in order to attract customers and to encourage them

in engage in seemingly mutually beneficial relationships, although it is fair to say that
customers might actually be at a disadvantage in many of these relationships.
▪ Traditional promotions revolve around these three interrelated concepts:
1) Promises by sellers
2) Attraction of customers
3) Mutual benefits
▪ A firm that is preoccupied with giving promises may attract new customers and initially
build relationships. However, if promises are not kept, the evolving relationship cannot be
maintained and enhanced (Calonius, 1983).
▪ Fulfilling promises that have been given is equally important as means of achieving
customer satisfaction, retention of the customer base and long-term profitability. It should
be stressed that promises must be mutually given and maintained. Marketers should not
give faked promises. Allah has ordered believers to honor promises.

JUN JUHAIZI JUHARI 39

▪ The Quran states “you who believe! fulfill your obligations” (Surah Maeda 5:1) and Said “O
you who believe! Why do you say that which you do not do? Most hateful it is with Allah
that you say that which you do not do (Quran, 61:2,3) and states, "O ye who believe! Fear
Allah and be with those who are true in word and deed" (Quran, 9:119).

▪ The importance of maintaining promises has been stressed in Sunnah. Prophet
Mohammad (PBUH) said in Hadith: “the three signs of blasphemers are lying, not keeping
promises and not being trustworthy”. From an Islamic perspective any promise given to
customers must be kept and honored.

ISLAMIC ETHICS IN MARKETING CAMPAIGN

A) Implications for Advertising
1) Use males, not females
2) Use cartoons and animations, not humans
3) Use natural objects such as landscapes, animals, birds
and so on, not humans
4) Use conforming backgrounds, not rebellious ones.
5) Use quiet Islamic music, not loud Western music. No rock and roll and no rap.
6) Use optimistic music and settings, no blues.
7) Make no reference to sexuality, nudity, indulgence, hatred or racism.
8) Utilize Islamic TV and radio channels, not the all-dancing all-singing ones.
9) Emphasize modesty and respect.
10) Use green and white, avoid black and blue. Black is associated with mourning,
darkness and loss of guidance while blue is described as the color of the
wrongdoers in the Day of Judgements.

JUN JUHAIZI JUHARI 40

B) Implications for Sales Promotion

1) The person offering the promotions should be recognized
as a Muslim, especially in the case of food items.

2) Muslims go shopping in families so make sure to give to all
not just some of the family members. Especially when it is
taste promotion.

3) Have a promotion after prayers, not before.
4) Muslims are becoming increasingly sceptical about the motivations underlying the buy

one, get one free and other similar offers citing reasons as low quality, impending expiry
dates, poor warehousing conditions and so,on.
5) Local families in the Arabian Gulf countries go shopping in the morning because markets
are less crowded and because women in the families are usually unemployed.
6) A sales promotion must be seen as a gift, not as a charity or as a way of luring in
customers.
7) Muslim populations in general are very colourful and they like colours and
celebrations.Promotions must be presented in a family-friendly atmosphere of
celebrartions.

C) Implications for Telemarketing

1) When calling at home, employ women, not men.
2) If they say no, do not call again unless you have

something that is genuinely different.
3) Do not call between Zuhur (noon) and Asr (afternoon)

prayers. Muslims in many countries have a habit of
napping within they provide.

D) Implications for Public Relations

1) Celebrate real people and avoid showbiz celebrities.
2) The people involved in the activity must be from the

local population, dressing, talking and behaving like
them.
3) Being charitable is greatly glorified in Islam.

JUN JUHAIZI JUHARI 41

Baker Ahmad Alserhan, (2015), The Principles of Islamic Marketing, 2nd edition. New York:
Routledge Taylor & Francis Group.

T. C. Melewar, Sharifah Faridah Syed Alwi & Nor Othman. (2018). Islamic Marketing and
Branding: Theory and Practice. United Kingdom: Taylor & Francis Group.

Mohd. Shuhaimi bin Haji Ishak & Osman Chuah Abdullah. (2012). Islamic Perspective on
Marketing Mix. International Journal Of Business And Management Studies, 126.

JUN JUHAIZI JUHARI 42

CHAPTER SIX

Halal Logistics

LEARNING OBJECTIVES:
1. Explain the concept of Halal integrity.
2. Discuss the importance of Islamic logistics.
3. Describe the requirements of Islamic logistics.

▪ Halal integrity is crucial to the success of the emerging halal market.
▪ A formal definition of halal integrity might be articulated as the assurance of safe (pure),

quality (good) and free from mal-practice (lawful) food from farm to fork.
▪ Halal integrity not only deals with permitted and prohibited foods, but that the halal

status of the food products (i.e. from raw materials until it reaches the consumers) should
not be breached (i.e. no cross-contamination with haram products/methods and no ill
intents).
▪ Halal logistics is important to maintain integrity of halal products supply chain.

1) Halal logistics as source of competitive advantage
▪ Traditionally, what has been considered to determine whether a product is Halal or not
was the final stages of production, where the process and ingredients are guaranteed
to be compliant with the principles of Islamic Shariah.
▪ Companies that can demonstrate that their Halal products has actually been
prepared, transported and delivered through a Halal supply chain will be clearly
advantages over companies.
▪ Communicating the fact that a company’s entire logistics are compliant might even
be more important than declaring that the final products is Halal, which is usually no
more than stating the obvious since a product would not be targeted at Muslim
consumers if was Haram in the first place.
▪ For example: some TV advertisements targeting Muslims now include short videos of
clean factories, well-dressed workers, sunny green fields, and happy farm animals
transported in cruise-like ships or flown in business class.
JUN JUHAIZI JUHARI 43

2) Halal hubs
▪ Government around the world are increasingly realizing the importance of Halal
logistics to the establishment of a Halal industry that can compete successfully within
the sophisticated Halal market.
▪ Some of these governments are investing substantially to create what is called
HALAL HUBS where tailor-made manufacturing centers and Halal logistics ensure
that product purity is maintained during shipping, handling and storage.
▪ So far, the most influential players in the fields of Islamic or Halal logistics are Brazil,
New Zealand and the Netherlands-obviously the three are not countries with
dominant Muslim populations.
▪ Some Muslim countries also strengthening their capabilities and developing Halal
logistics mainly Malaysia, Dubai and Turkey.
▪ The advantage provided by the location of these countries allow them to link the
regions where the bulk of the Halal industry is concentrated: South East Asia and
Australia, the Middle East and Europe.

3) Halal ports
▪ A central theme in Halal logistics is the establishment of Halal Ports where Halal
support services are provided.
▪ Two ports are taking the central stage at the filed of Islamic logistics :
1) Rotterdam Port
2) Penang Port
▪ Rotterdam Port : aiming to become the port of entry fo Halal goods into the EU and
working together with other market parties such as Hecny Group, Eurofigo and Vat
Logistics, the port of Rotterdam offers Halal Supply chain solution and dedicated
Halal warehousing and a distribution zone in the Netherlands.
▪ Penang Port: is preparing itself to be the top Halal business hub in Asia. It will oversee
the coordination, facilitation, promotion and development of Halal industries in the
state of Penang in Malaysia. It positioned as a link between investors, suppliers and
global Halal markets.

JUN JUHAIZI JUHARI 44

▪ Halal logistics can be defined as the process of managing the procurement, movement,
storage and handling of materials, parts, livestock, and semi-finished inventory, both
food and non-food, through the organisation and the supply chain in compliance with
the principles of the Shariah law.

▪ Halal logistics system involves the organisation and provision of integrated and value-
added services to the Halal industry.

▪ The core components of the system include the services of transportation, warehousing,
storage, cold room, containerization, packaging, test labs, traceability, networking
infrastructure, Islamic financial services and marketing.

▪ These components need to fulfil two main requirements: ensuring ACTUAL and
PERCEPTUAL shariah compliance.

▪ They must prevent actual contamination as well as provide assurance to consumers that
the entire line of services is Halal or maintain the Halal Integrity of a product.

Requirements Of Halal Logistics
1) The Prevention of Actual Contamination

▪ Halal logistics providers should ensure the prevention of:
a) cross-contamination that could result from shared facilities and handling
b) Contamination from residuals and traces such as aromas, which could result
from shared use and inefficient cleaning.

▪ This condition can be achieved through:
1) having a dedicated transportation service that transports nothing but Halal
products and,
2) entirely separate warehousing, storage, and cold-room facilities where only
Halal products are stored and handled.
3) The containerization and packaging operations should also be handled in
dedicated facilities by separate equipment and workers.
4) Special care must be given to worker’s hygiene by using a different and
distinguishable uniforms for handling Halal and placing restrictions on the
movement of workers and machines and tools between Halal and Haram
premises and operations

JUN JUHAIZI JUHARI 45

2) Assurance To Consumers

1) Providing easy access to advanced test labs that can give accurate and speedy
results on the type and permissibility of all the ingredients, both declared and hidden,
used in the manufacture of the products.

2) Preparing records that show all activities and stages of product manufacturing,
handling and movement, and making these record available to both public and
private businesses and consumers.

3) Building an enhanced networking infrastructure that assist companies in organizing
networks of suppliers and manufacturers, where involved business and consumers
can source high-quality Halal ingredients and raw materials and a form relations that
ease the conduct of their Halal business and allow them to engage in more
profitable operations.

4) Providing Islamic financial services that cater specifically to the needs of the parties
involved in Halal logistics would indeed add to the image of the Halal supply chain
and the product involved as being shariah-compliant.

5) In marketing Halal logistics, it is important not to ignore the psychological dimension
wherein a Halal product is an extended concept, not just the core and final product,
be it a loaf of bread or a glass of milk.

REFERENCES

Baker Ahmad Alserhan, (2015), The Principles of Islamic Marketing, 2nd edition. New York:
Routledge Taylor & Francis Group.

T. C. Melewar, Sharifah Faridah Syed Alwi & Nor Othman. (2018). Islamic Marketing and
Branding: Theory and Practice. United Kingdom: Taylor & Francis Group.

Mohamed Syazwan Ab Talib and Mohd Remie Mohd Johan. (2012). Issues in Halal Packaging:
A Conceptual Paper. International Business and Management, 94-98

JUN JUHAIZI JUHARI 46

CHAPTER SEVEN

Product Issues and Its Impact

LEARNING OBJECTIVES:

1. Discuss halal issues.
2. Describe branding issues
3. Explain the issues on harmful products
4. Describe the issues on deceptive packaging

▪ Saeed et al. (2001, pg. 138), mentioned that “Islamic principles dictate that the
production process (in the case of IBs, product development process) must be innocent
and pure from beginning to end.” They further state, “The production process must be
guided by the criteria of the value and the impact of the product upon the whole society
which is to prevent conflict, unjustified profits, fraud, uncertainty, and harm to society”
(Saeed et al., 2001, pg. 138). There should be no violation in the form of products against
Islam, such as attractive packagings like women‟s underwear, feminine pads, and
diapers. They should also encourage social and welfare approaches and do not resort
to making decisions based on profit maximization (Abuznaid, 2012).

▪ The production process in Islam is a part of the worship of Allah (Al-Faruqi, 1992).
▪ This is very different compared to Western thought.
▪ In Islam, the production decision-making process is guided by the principles of legality,

purity, existence, delivery, and the right determination (Al-Misri, 1991).
▪ Islam encourages the perspective of welfare and social approach rather than a decision

based on the maximization of profit (Miller and Deiss, 1996).
▪ Product quality is very important in the ethics of Islam (QS 2: 172, 7)
▪ These principles indicate that the product must:

1) Halal does not cause problems with thinking in any form, especially in a society
(immoral).

2) The product must be wholly owned by owner
3) The products must be submitted after the sale and the product is not valid if it

cannot be submitted as an example of selling fish in the river.
4) Goods are bought and sold must include the quantity and quality (Al-Ukhuwa,

1983 as cited in Abuznaid, 2012).

JUN JUHAIZI JUHARI 47

HALAL ISSUES

▪ Halal issue is starting to get the place and attention in the market, and it is very
influencing in marketplace particularly in most Islamic countries.

▪ Among halal issues that arisen are including improper hygienic practice at processing
premises and the expiration of halal certification.

▪ In today’s global market, the concept of halal can no longer be restricted to simply
meaning food that is ‘pork free’. It covers a multitude of forms such as emulsifiers and
other food contents e.g. gelatine, enzymes, lecithin and glycerine as well as additives
such as stabilizers, flavourings, colourings, breadcrumbs etc.

▪ These contribute to food that has been enhanced or added by doubtful substances or
animal enzymes into halal food products and questionable in Islamic law.

▪ Other issues include the slaughtering of poultry and meat produces in a manner
inconsistent with the rites of Islam and food ingredients intermixed with non-halal
materials. According to [6], it is difficult to verify the halalness of food or other groceries
especially when they come pre-packaged or processed. For instance, it is difficult to
trace a chicken that has not been slaughtered appropriately when it has already cut
into pieces. Hence, the chicken is forbidden for the Muslims for consumption.

▪ Halal issue also attracted non-Muslim consumers’ awareness and needs since it related
to the highest quality of products and services that they consumed or used.

▪ Halal principles are not isolated to the religious only but appeal as healthy and hygienic
cuisine style as people become more health conscious.

▪ There are strong demands for halal product in non-Muslim countries. They chose to eat
halal food due to the perception that it is a healthy choice. Due to lack of knowledge
and insufficient information on the benefits of halal process, they are not practicing it on
their daily lives.

▪ Halal certification is becoming another issue of halal , where the manufacturers or food
producers still use the same halal certificate even though the certificate is already
expired.

▪ This might be due to some of the manufacturers were not aware that their halal
certification has expired, or they refuse to renew it. Halal certificate is valid for only 2
years, and it is difficult for them to always renew the halal certificate since it costs
money and time. Furthermore, it is costly to repurchase the halal certificate and
requires strict process to renew the certificate.

▪ According to Soong (2007), Halal product packaging must consist of name or brand
of the product, minimum content in matric, name and address of manufacturer or
distributor, list of ingredients, code number representing production batch and
manufactured and expiry date and Halal logo from recognized certification agencies.
JUN JUHAIZI JUHARI 48

BRANDING ISSUES

▪ A brand distinguishes a company’s products from those of a competitor by using a
recognizable name, symbol, color and design to mark the distinction. Branding is a
powerful tool that shapes reputation and builds loyalty.

▪ Research done by Shafie and Othman (2006) mentioned that the issues with Halal
certification are the various series of Halal definition, issuance of Halal logo by private or
individual authorities, the use of Quran verses or Arabic characters on food products and
premises and the weak enforcement by responsible authorities in tackling fraud Halal
logos.

▪ According to Soong (2007), Halal product packaging must consist of name or brand of
the product, minimum content in matric, name and address of manufacturer or
distributor, list of ingredients, code number representing production batch and
manufactured and expiry date and Halal logo from recognized certification agencies.

▪ Presently, it is apparent that most companies are practicing putting halal mark on their
products and premises.

▪ They do not understand the actual concept of halal as if they are doing it just for the
sake of gaining confidence from the Muslim consumers.

▪ It discovered the abusing of halal logo by the producer. This issue instilled the doubtness
and uncertainty among Muslim consumers when they are intending to purchase food
products.

▪ The problems arise due to the local food manufacturers that did not comply with the
Malaysian Halal Standards as well as they cannot prove any documents indicating that
their product can be labelled as halal.

▪ For instance, the issue of products that use fake halal logo on noodle products made in
Malaysia .

▪ This related issue could trigger chaotic consequences among consumers, especially
Malaysian Muslims.

▪ In Islam, searching for halal is compulsory. As the chain reaction, this issue can halt the
process of making Malaysia as one of the important halal hub across the globe.

▪ Initially, the idea of using halal logo is to help Muslim consumers to be sure of their
products selection. The only halal logo that is permitted by JAKIM is the one that has the
word Malaysia.

JUN JUHAIZI JUHARI 49

HARMFUL PRODUCT

▪ Products in Islam must not cause any harm or dullness to the mind, must be asset backed
and deliverable, must identify extra–cost added features that might materially change
the product or service impact on the buyers’ purchase decision. All obligations should
be discharged in good faith and should be based on principles of justice, fairness and
equity.

▪ Harmful products are goods and services forbidden in Islam. What has been explicitly
forbidden in the Quran and Sunnah of the Prophet are carrion, pork (Quran, 5: 4) and
alcoholic drink (Quran, 2: 219).

▪ Many people misunderstand that the forbidding of pork and alcoholic drink is an Islamic
evangelism and with the objectives of spreading Islam to the world. This is not right.

▪ Al-Quran also forbids gambling and prostitution and the use of interest (Quran, 2: 275) in
finance and banking; besides, the blood of animals (Quran, 5: 4) is also not allowed for
consumption. These are some of the forbidden things known as nonhalal products in
Islam.

▪ Many cases are reported on a daily basis about the harms of goods consumed. This is
such a cruel reality of life. However, there is a socially acceptable way in which Islam
indicates how profit should not be the sole and only objective. Greediness to get money
through illegal means is forbidden in Islam.

▪ Thus, we must consider the harmonious existence of all mankind and also create more
welfare by making products beneficial for all.

▪ Another issue is the authenticity issue in food ingredients and food products.
▪ Authentication is defined as a process in which a food is verified as conforming to its

label description.
▪ With advanced technology in meat processing industry, fraud and adulteration have

become common due to monetary benefits.
▪ The main issue is whether the halal product has been combined or mixed with other

similar materials such as pork derivatives where it is cheaper and easy to obtain.
▪ However, the safety of food for Muslim consumption remains in doubt.

JUN JUHAIZI JUHARI 50