PPT SLIDES ISLAMIC MARKETING MKT 2593

CHAPTER 5

JJJ 151

SOCIAL-ECONOMIC, CULTURAL, AND
POLITICAL ENVIRONMENTS

JJJ 152

SOCIO- Social and cultural analysis relates
CULTURAL to behaviour and the willingness
of people in accepting new ideas,
products and concepts.
Qualitative research is being used
to know the behavioural patterns
of consumer such using focus
group interviews.

HOFSTEDE 154
CULTURAL
DIMENSION.

JJJ

MALAYSIA

Individualism Individualism is the degree of
Vs Collectivism interdependence of society maintains
among its members.
It has to do with whether people self-
image is defined in terms of “I” of
“We”.
Individualism = people look after
themselves and their direct family
only.
Collectivism = people belong to
“group” that take care of them in
exchange of their loyalty.



◦ https://understandquran.com/5-beautiful-muslim-rights.html

















Cultural Identifies as beliefs, arts morals,
Environment laws, customs and any habits
acquired by men as members of

society.

Culture

Static Dynamic
Elements Elements

Language Art (Visual,
literary, and
performing)

Music

Symbols of
Beauty (physical
representation)

Fashion

TRANSMISSION OF Religion
CULTURE Family
Education
Mass Media

Existing ◦ The political environment consists of
organization laws, government agencies, and
that pertain to pressure groups with the power to
the political influence or limit the behaviour of
environment. individuals and organizations in a
given society.
170
JJJ ◦ Changes within the political and legal
arena can affect business. Therefore, it
is important for marketers to
understand public policy and
legislation, and the implications
presented for business and marketing.

Political ◦ Issues like regulations, exports subsidies, political boycott
of brands and products, expropriation and confiscation,
corruption and bribery all fall under the category of political
analysis.

◦ Malaysia, which had a holistic ambition to encompass all
business related to Islam, specifically around halal produce.

◦ It was the first country to establish stringent standards and
certification rules for halal food and one of the first also to
establish clear rules concerning Islamic finance.

◦ Tabung Haji as the institution organising the annual hajj to
Mecca is often lauded as the best hajj organiser in the
world.

◦ Under the premiership of Muhammad Mahathir and Ahmad
Badawi, Malaysia was on its way to becoming the
champion of Islamic business, with public and private
initiatives in all domains, be it halal hospitality, Business
Jihad launched by JCorp and so on.

◦ Many countries, and not only Islamic countries,
benchmarked the achievements of Malaysia in order to
introduce their own halal laws (Australia and New Zealand
for instance)

Legal ◦ The Muslim legal environment is derived from the Shariah (sacred law) and
concepts Fiqh (jurisprudence).
that govern
the Muslim ◦ Sharia law comes from a combination of sources including the Qur'an (the
Muslim holy book), the Hadith (sayings and conduct of the prophet
life Muhammad) and fatwas (the rulings of Islamic scholars).

172 ◦ For a Muslim, the purpose of life is to be a good trustee on earth by doing
JJJ good to others. Hadith, one finds extensive discussions of the nature of
leadership, and of its relationship with governance, authority and power; and
the complexities of decision-making (Cerimagic, 2010;Ali, 2005.

◦ Profit is not a sole objective for muslim in conducting business (arham, 2010).
Islam guides its followers to engage in commercial activities and to refrain
from the practice of charging interest. (Cerimagic, 2010). as long as the
process of the business is parallel with Islamic teaching on doing business,
commerce is considered essential in Islam.

◦ Cerimagic (2010) proves that sharia principles induce companies to be wary
of factors, such as interest, uncertainty, or risk. The law is created to protect
the welfare of all the parties involved. As a result, the law seeks to present
justice and fairness to both companies and customers

CHAPTER 6

JJJ 173

ISLAMIC PRODUCT

LEARNING OBJECTIVES

1 2 3 4

Differentiate Understand the Understand the Understand the
between an Islamic principles of Islamic product concept of harmful
product and a guiding product hierarchy. products and the
conventional decisions within an Islamic legislation
product. Islamic context. for their disposal.

JJJ 175

In Arabic Tayyibat : refers to purity, wholesomeness, and
language, lawfulness
the terms of Rizq (sustenance) : the source of the tayyibat, Allah,
products, who also describes himself as Tayyib.
commodities
and goods
are:

INTRODUCTION Mataa : describe the worldly uses or purposes of
these products; means fun and joy

Zenah : describe the worldly uses or purposes of
these products;products as means of beautification
and adornment
Sel’ah and Bezaa’ah : without any
connotations.Need to be used with care to avoid
any association with extravagance, which is
condemned by the teachings of Islam

DEFINITION ◦ In conventional marketing, a Product is defined as a
OF THE good or service that most closely meets the
requirements of a particular market or segment and
PRODUCTS yields enough profit to justify its continued existence (
Businessdictionary 2010).
177
JJJ ◦ 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.

CLASSIFICATION OF PRODUCTS IN ISLAM

• 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 Tarafiyyat
enters the forbidden zone of tarafiyyat.

(extravagances)

• It involves the satisfaction of the five pillars of life using products of
higher order.
Kamaliyyat • Example: owning beautiful house in upscale area, private
(improvements) • transportation, expensive schooling.
The brand name becomes much more significant in products
adoption and use.

• These correspondence to basic products as stated previously but Hajiyyat
differ in quality, amount and availability. (needs)

• 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.

Dharuriyyat • Basic foods and drink, clothing, basic transportation,
medication and health services, literacy, security,etc
(necessities) • These products are given priority

JJJ 178

JJJ 179

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

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.

JJJ 180

WHAT ARE Dead animals and their products.
HARAM Pig product.
All intoxicating products.
PRODUCTS? Gold and silverware.
Silk and gold for men.
Riba, or charging interest on lending money.

JJJ 181

ISLAMIC Permissibility is the rule; prohibition is the exception.
PRINCIPLE To permit and to prohibit is the right of Allah.
GOVERNING Prohibiting the Halal and permitting the Haram is wrongdoing.
HALAL AND The prohibition of things is due to their impurity and harmfulness
What is Halal is sufficient, while what is Haram is superfluous.
HARAM Whatever is conducive to the Haram is itself Haram.
Falsely representing the Haram as Halal is prohibited.
Good intentions do not make the Haram acceptable.
Doubtful things are to be avoided.
The Haram is prohibited to everyone alike.
Necessity dictates exceptions.

JJJ 182

TASK 1. Pick 1 brand for each of
the product classification in
Islam.

2. Present your information.

CHAPTER 7

JJJ 184

ISLAMIC PRICING PRACTICES

JJJ 185

INTRODUCTION

◦ 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
PRICE?

◦ It 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

CONSUMERS The true spirit of Islamic teachings on pricing can best be illustrated in the
AS PRICE following story that happened during the early days of the Islamic state.
SETTER
A companion of the Prophet, Jareer Ibn Abdullah, said:’We made a covenant
to the Prophet, may peace be upon him, that we listen and obey and give
advice to the Prophet to all Muslims’.
Jareer sent his servant to buy a horse. The servant found a horse for 300
dirhams and brought it back along with the seller so that his master could
complete the purchase and give the seller the money.
When Jareer saw the horse he estimated that it was worth much more than
the agreed price; he told the seller this and offered 400 dirhams, which the
seller agreed to. Jareer then offered 500 and again the seller agreed.
Jareer kept on raising the price until it reached 800 dirhams and gave the
amount to the seller. The servant was bewildered by this master’s action and
asked why he did it.
Jareer explained that he had made a covenant with the Prophet to give
advice to all Muslims, and therefore that was simply the right thing to do: to
inform the seller, his Muslim brother, of the accurate price of the horse.

JJJ 188

THE MARKET The Islamic teachings stressed that the trade is a welcome activity.
AS A PRICE-
All traders and consumers should be allowed to engage in free exchange.
SETTING
MECHANISM 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.

JJJ 189

THE MARKET If the price control results in the sale of goods at an unacceptable price that
AS A PRICE- denies traders the reasonable profit permitted by Allah, interference and
price control becomes HARAM.
SETTING If, on the other hand, price control leads to equity in the market,e.g by
MECHANISM making sellers accept a price equal to that set by other comparable products,
then the control is HALAL.
(continue) 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.

JJJ 190

SELLERS’ ◦ Market forces are free to dominate only until the ‘freedom’
RIGHT TO SET of the consumer is put at risk, for example, jeopardizing the
consumers’ right to healthy food, suitable medication or
PRICES VS. proper education.
CONSUMERS’
◦ Companies should be aware that their ability to manoeuvre
RIGHT TO (operate) within this market is subject to the products they
ACQUIRE sell and to the type of their operations, e.g if they operate at
NECESSITIES the high end of the market at the Tarafiyyat or
extravagancies level, they will most likely to be free to set
191 their prices but if they operate at the basic products levels
JJJ 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 were
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

THE ◦ Three terms are used in the Quran to describe transaction between
COVENANT people themselves and between people and Allah:
BETWEEN
THE BUYER ◦ 1) Mithaq (covenant)
◦ 2) Ahid (also covenant)
AND THE ◦ 3) Aqid ( contract, the plural is Auqood)
SELLER ◦ In Islam, all Shariah-compliant transactions are covenants approved by

192 God and must be honoured by all those who agreed to their terms.
JJJ ◦ 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.

THE BUYER- ◦ Islam teach ‘One of you will not be a believer until he
SELLER SHARED likes for his brother what he likes for himself’.(Prophet
RESPONSIBILITY Mohammad). It commands both buyers and sellers to
have compassion for each other.
FOR PRICING
◦ Seller must think of himself as a buyer and then
193 determine what equitable price he would be willing to
JJJ 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.

IMPLICATIONS ◦ Businesses operating in Muslim markets need to pay
FOR special attention to how they set prices. They must:

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

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

◦ Company could build good will by providing high-
quality products at affordable prices to the less
advantaged among these consumers.

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

CONCLUSION ◦ It is religious duty of the sellers and
buyer to act responsibly.

◦ The seller is to be generous and giving
when determining the price of his
offering

◦ The buyer is asked to be no less
generous and giving when purchasing
such an offering.

◦ The relationship between the two is
based on whether God is pleased with
it or not.

CHAPTER 8

JJJ 196

ISLAMIC PROMOTION

JJJ 197

LEARNING 1. Understand the principles guiding
OBJECTIVES promotions within an Islamic
context.

2. Understand the transformation of
the holy marketers.

3. Understand the importance of
promotions as promises

4. Understand the implications of
extended accountability

5. Know what should or should not be
included in marketing campaign.

UNDERSTAND ◦ Islam is not new to promotion.
THE ◦ In fact, it is based on disseminating information and creation of

PRINCIPLES awareness.
GUIDING ◦ Rice & Al-Mossawi,(2002), Haque et al. (2011), and Behravan et al.

PROMOTIONS (2012) asserted based on the Holy Quran that advertising is not
WITHIN AN prohibited, but rather recommended for promoting Islamic value.
ISLAMIC ◦ The same promotion and marketing tactics as used today were
CONTEXT employed more than 1400 years ago by the Muslim holy marketers’
(Alserhan, 2011).
199 ◦ Promotion is a set of tools that company use to persuasively
communicate customer value and build customer relationships.
JJJ ◦ No other religions in human history that has relied so heavily on
promotions as much as Islam.
◦ In fact, the Quran which can be rightly described as the greatest book
ever written on promotions.
◦ Islam is a religion based on dissemination of information and
awareness creation.
◦ Using contemporary marketing terms, they excelled in networking and
personal selling whereby they generated leads and qualified
prospects; attended gatherings; organized public speeches and
debates; utilized public relation.

UNDERSTAND THE TRANSFORMATION
OF THE HOLY MARKETERS

Celebrating QURAN – Lessons for Marketer Power
Beauty & of
Goodness
Words

Gradualism Celebrating
& Beauty &
Goodness
Persistence
200
JJJ