PPT SLIDES ISLAMIC MARKETING MKT 2593

OPPORTUNITIES ◦ As Islam represents a lifestyle as well as a
IN ISLAMIC religion, the appeal of tapping into the total
BRAND market for Islamic-branded products and
CATEGORIES services has spawned a great deal of recent
activity across many categories, including:
101
JJJ ◦ Islamic Foods & Beverages
◦ Islamic Finance – wholesale/retail
◦ Islamic Education
◦ Islamic entertainment and edutainment
◦ Halal Travel, tourism and leisure
◦ Islamic medical, pharmaceutical and beauty

products and services
◦ Islamic Fashion and products for women
◦ Islamic internet, media and digital products

and services

1. Islamic ◦ It deals mainly in halal foods and drinks
Foods & ◦ According to Halal Journal, the global brand foods market was estimated to
Beverages
be worth US$580 billion in 2004 and US$632 billion in 2009.
◦ Although this figure is growing, it represent only around 16 percent of the

worlds’s total food expenditure, as muslims have a relatively low purchasing
power in terms of food products. Asian countries represent the largest market
with 62 percent of Muslims living in this region.
◦ The halal food and beverage market thus provides a huge opportunity for
Islamic companies to go global.
◦ However, many of the branding opportunities are being taken up by global
Western brands such as Nestle, etc.
◦ Some brands are content to continue to serve their own market, despite
having the capability to go global. For example: Yildiz Holding from Turkey,
owner of the famous Ulker brand started in this way and then moved into
other markets as it gained expertise and capacity. This is a good strategy to
build brands become number one in your own market before moving out into
international markets. ( Refer to case study : Yildiz Holding)
◦ Refer to https://english.yildizholding.com.tr/our-story/ for detail information.

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ii Islamic ◦ It could be argued that the Islamic financial services industry is both old and new.
Finance – ◦ It is relatively old in that it was frequently used in medieval times for trading purposes. For

wholesale/retail example, between the Arabs of the Ottoman Empire and the Spanish, with financial
arrangements made on a profit and loss sharing basis, as opposed to an interest-based
mechanism. Indeed, until the middle ages, Christianity also prohibited the charging of
interest.
◦ Gradually, as trade expanded across the globe, European and Western companies
became more involved in business and established their own banks that financed
business activities using the notion of interest.
◦ Until the 1970s that Islamic finance really began to establish itself again this time as an
alternative to conventional banking.
◦ The first sustainable and recognized Islamic bank was Dubai Islamic Bank, which was
founded in 1974.
◦ Countries are also racing to capitalize on this trend, with a few countries aspiring to
become Islamic finance hubs such as Malaysia, Singapore, Hong Kong, London and
others.
◦ It lead many players in the industry to call it “shariah-compliant”, “shariah-based” and
“ethical” banking,
◦ The main difference between Islamic and conventional finance is that money from an
Islamic finance source is viewed as a trade facilitator as opposed to the conventional view
of money as a store of value. The notion of “interest” or “riba” in islam is prohibited

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iii Islamic ◦ Strong brand survive, Al-Azhar located in Cairo is
Education probably the most important university in the
Muslim world.

◦ An Islamic education becomes more
commercialized and enters into the mainstream of
educational services.

◦ It is an area of growth with good prospects for
new markets entrants.

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iv Islamic a) Entertainment
entertainment ◦ Art, sports and entertainment can be enjoyed by anyone.
◦ There are hundreds of television channels throughout the
and
edutainment world dedicated to the Muslim consumer, varying in
content usually but not always by country.
◦ Example: Islam channel in UK are one of the brand that
doing well in muslim-minority countries.

b) Edutainment
◦ Sitting between education and entertainment is an

interesting development that marketers call “edutainment”.
( Refer to case study : THE 99)
◦ The 99 comic book series is based on superhero characters
who each personify one of the 99 qualities that Qur’an
attributes to God.

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v Halal ◦ Islamic travel, tourism and leisure is another
Travel, segment of the Islamic market that offers products
and services to Muslims and non-muslims.
tourism and
leisure ◦ From tourist destinations in the Middle East to
halal airlines and fully halal hotels and resorts.

◦ Muslim travelers can look to Islamic service
companies for travel planning assistance, for
example www.Irhal.com and CrescentRating.com
(Refer to case study : Crescentrating.com).

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vi Islamic ◦ For many Muslims who want to comply with Shariah
medical, law and ingest only what is halal, there is growing
industry in generic medical, pharmaceutical and
pharmaceutical healthcare products that don’t contain non-
and beauty compliant substances such as certain animal-based
products and gelatins.
services
◦ Organically made products such as the European
skincare brand Saaf Pure Skincare, contain highly
concentrated healing botanicals, anti-inflammatory
seed oils, shea butter and other ingredients that offer
an alternative not just to Muslims but to anyone in
using natural, as opposed to animal ingredients.

◦ Cosmetics and personal care products from an
increasingly significant part of the growing market
for halal products in the Muslim world.

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vii Islamic ◦ The world of Islamic clothing and fashion has
Fashion and started to blossom globally, offering women a vast
products for array of products that combine houte couture with
Islamic principles.
women
◦ New products that are more recreational in nature
such as the “the bodykini” and “burqini”
swimwear.

◦ Example, Aab which was formed on the premise
of designing fashionable and be spoke Islamic
clothing for the modern British Muslim.

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viii Islamic ◦ The internet, media and digital products are
internet, plentiful and Muslims can easily find digital
media and libraries, digital and photography, digital Islamic
digital clock widgets and a whole host of other products.
products
and services. ◦ Pure e-brands also are increasing in number such
as the internet portal www.halalpaloza.com which
is a guide to the world of Islamic e-commerce.

◦ In the area of social networking, brands such as
Muslim.com are also rapidly growing.

◦ Example, Salam Web Technologies MY Sdn. Bhd
was introducing Salam Web which is the first
search engine that is shariah-compliant.

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KEY ◦ Islamic brands attempting to break into and
CHALLENGES progressively gain a share in their chosen
FOR ASPIRING markets, especially where Western brands are
already in dominant positions.
MUSLIM
BRANDS: THE ◦ To overcome a variety of challenges, the six
main areas are important:
SIX A’S 1. Awareness : Gaining brand
awareness
110 2. Accessibility : Ensuring accessibility
JJJ 3. Acceptability : Gaining acceptability
4. Adequacy : Achieving suitable and
consistent standards and quality
5. Affinity : Gaining trust
6. Attack : Attack from brand
competitors

1. Gaining ◦ One of the most obstacles to the growth of Islamic brands is achieving
Brand brand awareness when entering already crowded markets dominated
by other especially Western brands.
Awareness
◦ How can a breakthrough be achieved in terms of consumer trial,
purchase, and preference when there is already some loyalty towards
existing established brands?

◦ For example, in the sport shoes and apparel market, Nike has around a
40 percent global market share, with Adidas and others falling way
behind.

◦ The media provides a good example of how a niche market can be
created without directly challenging the global giants. For example,
while CNN is probably the world leader in news, followed by BBC, AL-
Jazeera is well on its way to becoming a global brand, targeted at
Muslim audiences and people who want a different and not nesessarility
Muslim perspective. Cleverly, A-Jazeera has a good strategy that
downplays its Islamic heritage and adopts a very western style of global
news presentation. It employs some well-known former Western news
anchors and presenters to gain the attention of global audiences and
avoid Islamic stereotyping.

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2. Ensuring ◦ A second challenge to Islamic companies wishing to build their brands
Accessibility is the issue of how to gain access in these sometimes-crowded markets.

◦ In order to become successful as an international brand, it is important
to get critical mass in terms of distribution. For example, gaining shelf
space in supermarkets in major cities is tremendously difficult for smaller
brands, where the major players dominate consumers eyeballs.

◦ For example, in United States where halal food products are
outnumbered by Kosher products in supermarkets by a ratio 86;1. As a
consequence, 16 percent of Muslims in the US buy kosher foods as they
cannot gain access to their preferred halal products.

◦ There are two ways to solve this problem :
1. Create an alliance or strategic partnership with the big retailers,

as several companies have done with Tesco in countries such as
Malaysia.
2. Go for a niche target market with carefully planned distribution to
avoid competing against the established brands, and perhaps
tempt them into giving you space once you have made a market
impact. ( Refer to case study : Ummah Foods)

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3. Gaining ◦ In the absence of powerful branding, consumers are very risk-averse
Acceptability and don’t like to buy products from countries about which they have any
doubts or prejudices.

◦ For example, “Made in China” quality syndrome, where the truth or
otherwise of the perceived poor quality of Chinese-made products is
irrelevant. In the world of branding, perception is reality.

◦ Prejudice against the brand that might be perceived as being from an
Islamic country can take many forms. Brand owners have to decide
whether to play up or play down the country of origin and market
research can be particularly useful in determining what associations the
country of origin will have that will transfer to the image of the brand.

◦ Complete avoidance of any links to the country of origin is one of the
strategy that has proved to be successful if executed well in international
markets.

◦ Another strategy that can be used by Islamic brand is to attract non-
Muslims audiences through careful use of brand communication. In the
case of halal food, educational communications might be one way to
persuade people of the health benefits of halal products.

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4. Achieving ◦ By “adequacy”, it mean the capability of a company to
suitable and produce branded products and services that are of top
consistent quality and are acceptable to those markets where they
standards intend to sell them.
and quality
(Adequacy) ◦ If you want to do well in halal markets, you have to ensure
that you have the correct accreditation in place from the
relevant authorities.

◦ The issue of halal accreditation and quality standards is
worth commenting on again briefly here. Despite much
government support, many Muslim companies don’t make
it to the international stage because they satisfy only the
local part of the criteria.

◦ Further, whatever halal accreditation a brand has obtained,
this will not enable it to reach some developed markets
where the quality standards are high. In other words, halal
accreditation in many countries doesn’t link into quality
standards.

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Halal ◦ The need to standardize accreditation and
Standards labelling in particular is agreed at all the
usual halal forums and conferences, but the
Organization of the Islamic Conference (OIC)
countries never seem to be able to agree on
what the standards should be.

◦ To achieve the right accreditation logos to go
on packaging and so on, if the aim of the
brand is to enter Muslim-minority markets
where there is an opportunity also to attract
non-Muslims, then it also necessary to
educate consumers as to what halal actually
means.

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Educating ◦ Educating consumers about what halal
Consumers means is also challenging. Here companies
have a dilemma. If they want to reach out to
non-Muslim consumers, they have to explain
what halal is.

◦ One implications for brand communications
is to keep the halal profile low and the brand
profile high. By doing so, Muslims who are
looking for halal accreditation can see a halal
certification logo in small print on the back of
the packaging and the non-Muslims can see
the brand more upfront and brand
messaging that highlights the rational and
emotional attributes of healthy wellness,
organic, authenticity and so on.

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5. Gaining ◦ One “must have” for any aspiring international or
trust global brand is affinity and by this it mean trust.
Without trust, there is no loyalty and customers
(Affinity) won’t say with your brand. For example, Apple
brand. Once people become a customer of this
brand, they hardly ever seem to leave it.

◦ One of the element that go to make up trust is
quality. Once the customers have experienced the
quality of a brand’s products or services, then they
expect the same experience again and again.

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6. Attack ◦ The potential for or actual attack from established
from brand and major brand competitors, especially from the
competitors global brands. Opportunities in Muslim markets have
already attracted non-Muslim companies in large
numbers and the major companies have moved
quickly and quite deeply into these markets with
powerful positioning, strong brand names and good
value propositions that are already known and
respected both globally and in the Muslim world.

◦ A good example is Nestle, a global corporate brand
that is gradually ensuring that its range of 4,600
brands conform to halal standards and achieve halal
accreditation. It is very clear from the above that the
same Muslim market opportunities attract mom-
Islamic as well as Islamic companies and the larger
companies already have well-established brands.

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TASK 1. Form a group.
2. Identify the any local/international issue related to Islamic
Marketing
3. Each group shall be assigning with different
product/service:.

a) 1. Foods & Beverages
b) 2. Islamic Finance
c) 3. Halal Travel
d) 4. Modest Fashion
e) 5. Halal Media
f) 6. Halal Recreation
g) 7. Halal Pharmaceutical
h) 8. Halal Cosmetics
4. Explain the response of Muslim and non-Muslim toward the
issues.
5. Prepare a mind mapping containing the evidence of case
and discussion.
6. Distribute a copy of discussion among class members and
present it.

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CHAPTER 4

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IMPACTS OF ISLAMIC CONCEPT IN
THE MARKETING ENVIRONMENTS

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LEARNING OBJECTIVES

1 2 3 4

Comprehend the Examine the Muslim Understand the Comprehend the
impact of competitor and non-Muslim perception of public impact of economy on
to the Muslim market, consumers’ behavior toward the offering of Islamic marketing.
especially Muslim toward the Muslim product and
product and service. acceptance of Muslim service in the market.
product and service.

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The impacts ◦ Competition is the rivalry between companies selling
of similar products and services with the goal of achieving
revenue, profit, and market share growth.
competitor
on Muslim ◦ Market competition motivates companies to increase
product and sales volume by utilizing the four components of the
marketing mix, also referred to as the four P's. These P's
service stand for product, place, promotion, and price.

123 ◦ Knowing and understanding your competition is a
JJJ critical step in designing a successful marketing
strategy. If you are not aware of who the competition is
and knowledgeable about their strengths and
weaknesses, it's likely that another firm could enter the
picture and provide a competitive advantage, such as
product offerings at lower prices or value added
benefits.

◦ Identifying your competition and staying informed
about their products and services is the key to
remaining competitive in the market and is crucial to
the survival of any business.

What are the ◦ Islamic teachings promote market competition in three teachings.
Islamic
1) First is motivating and encouraging sellers to compete.
teachings ◦ Sellers, intend to compete, to strive and to vie continuously because they
that promote
understand that this competition is a good activity in two terms:
market ◦ First, competition is held in order to earn money used to fulfill their needs.
competition? ◦ Second, competition does not end up to a rivalry and hostility. This is supporting

sellers not to worry and to stop their competition.
2) Second is rejecting government intervention.
◦ Without government intervention, market is operated by sellers and buyers.

Including to the market operation/mechanism is competition among sellers. The
competition among sellers is so fair. Sellers win their competition against their
competitors, because their competition competencies are better to gain buyers‟
interest than their competitors, not because of government intervention.
3) Third is banning all of market unfair transactions.
◦ All of the banning blocks market participants from any unfair transactions. The
blocking from unfair transactions is an accurate and quick blocking. As a
consequent, nobody of the market participant will be disadvantaged.

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▪ All of the teachings will promote continuous 125
and fair competition because the market is
secured from other than sellers which are
motivated to compete continuously and fairly.
Intense competition has brought innovative
ideas to be different from others. Differentiation
is seen as the best remedy to survivein such
environment.
In this case, the distinctive characteristicof the
Islamic approach in marketing can be best
represented by staying on the path illuminated
by Syariah.
Permissibilityof products from Islamic point of
view is to safeguard the welfare of the
customer and ensuring quality that is universal
in nature

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TASK ◦ Form a group of 5 members.

127 ◦ Search for TWO products for each of
JJJ the categories of competitions:-

➢Muslim vs Muslim

➢Muslim vs Non-Muslim

◦ Provide brief history of the company
and its product/service and present in
the class

The impact ◦ Customers have the most direct
of customers microeconomic impact on a business.

in Islamic ◦ The simple fact is that you can't
Market successfully operate a for-profit
company without attracting targeted
128 customers.
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◦ Knowing your ideal customer types
and developing and presenting
effective marketing campaigns are
integral to building a customer base
and generating revenue streams

Consumer

Muslim Consumer Non-Muslim
Consumer

Shariah-compliant Adhering to other
than Islam

Culture-compliant Buying halal
labeled product

Buying product
associated with
Islamic countries

Who is ◦ Muslims who are aware of the teachings of
Muslim the religion of Islam relating to what to
Consumer??? consume, what not to consume, how to
consume it and when and where to consumer
it and they mostly adhere to these teachings.

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Shariah-
Compliant?

Culture-
Compliant

?

Shariah-
Compliant?

Culture-
Compliant

?

Shariah-
Compliant?
Culture-
Compliant?

Shariah-
Compliant

?
Culture-
Compliant?

5 minutes ◦ Each of the member of class requires
task!!! to search for any product for shariah-
compliant Muslim and culture-
135 compliant Muslim.
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Who is Non- ◦ Defined as those who adhere to faiths other
Muslim than Islam, buy products that are certified
and labelled Halal, and/or buy products that
Consumer? are known to be associated with Islamic
countries.

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Muslims and ◦ Regenstein et al. (2003) mentioned that, among all religions,
non-Muslims Islam has clear guidelines on food selection and lifestyle.

consumer ◦ These dietary guidelines specify that Muslims must eat only
behavior Halal (allowed or lawful) and Tayyib (clean) food products (Holy
Quran, Sūrat Albaqarah: 172), while abstaining from Haram
towards the (forbidden or unlawful) foods (Regenstein et al., 2003).
acceptance of
◦ Since 1970, the concept and understanding of Halal have
Muslim been expanding in the Muslim and non-Muslim nations.
product and
◦ Studies show that the acceptance of halal foods among non-
service. Muslim consumers is linked to the safety, nutrition, and quality
attributes of halal foods (Aziz & Chok, 2013; Haque et al., 2015;
Latif et al., 2014; Mathew, 2014; Rezai et al., 2012). It has been
recognized that consumers have become increasingly mindful
of the nutritional and ethical standards governing food
products – hygiene, nutrition, quality, origin, and animal welfare
(Latif et al., 2014; Mathew, 2014).

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Become Believing in
success the Day of
Judgement
Factors
Affecting
Muslims
Consumers’
Decision

Enriches
Life

Perceptions of It is important for marketing management to
public toward appreciate the value of having good
the offering of relations with all of a company's many
publics.
Muslim A public is any group with an actual or a
producs and potential interest in the company or its
service in the products/services, that might exert influence
on an organization’s ability to achieve its
market. objectives.
When planning and developing strategic
marketing plans, careful consideration
should be given to each of its major publics.

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TASK

1 2 3

Form a group of 3 Search for ONE Provide brief history
members. organization/group. about the
organization and
JJJ cases with between
Muslim market.

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The impacts ◦ Islamic economics aims to achieve the state of
of economy human falah by organizing the resources of the
on Islamic earth based on cooperation and participation.
marketing
◦ The word “falah” means to thrive, be happy, and
148 the successful
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◦ It refers to being successful in this world as well
as the hereafter and so has macro-micro level
implications for spiritual, economic, cultural and
political issues.

◦ In focusing on the economic conditions of falah,
the following must be fulfilled:
1. Infaq
2. Prohibition of riba
3. Fulfillment of covenants and trusts
4. Justice
5. Enterprise

In focusing on Infaq ; spending on others and meeting the social needs
the economic of the community from only part of one’s total possessions.
conditions of Giving zakat to the poor and needy is compulsory.
Prohibition of riba ; interest on capital is seen as
falah, the perpetrating exploitation and inequity.
following must Fulfillment of covenants and trusts ; meeting all of one’s
social and religious obligations, including to the
be fulfilled: environment.
Justice ; lawfully acquired wealth must be protected to
avoid inequality, impaired incentives and social waste.
Enterprise ; productive economic activity contributes to
the falah of society and the individual.

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INDIVIDUAL
TASK

1. Summarize the topic on that day
by drawing a simple mindmapping

2. Attach your mindmapping in the
PADLET Refer to
https://padlet.com/jjuhaizi/IslamicM
arketing