A Guideline to Islamic Marketing Mix

Qader Vazifeh Damirchi, Faculty Member Of Islamic Azad University Parsabad ranch
arat Vazifeh Damirchi, Pr!"ect mana#er Of Pars $ittin# $ystems
vazifeh%ader&#mail'c!m
Abstract(
Islamic values have lar#ely sha)ed the s!cial structures, culture and le#al n!rms that
influence c!nsumer )references and behavi!r' Its rules, matters !f #ive and ta*e, sales and
)urchase dealin#s issues +hich are define in ,!ly Quran ma*e the uni%ue c!nce)ts !f
Mar*etin#' Islamic mar*etin# related t! directly +ith cust!mer-s satisfacti!n and
c!mmitment' .ven business #ettin# benefit !r n!t, #ive the t!tal a+areness t! the cust!mers
ab!ut the )r!duct and services' D!n-t hide anythin# fr!m cust!mers' Alth!u#h the )ur)!se !f
Islamic mar*etin# is this /business f!r )r!fit /, but the im)!rtance is #iven t! the satisfacti!n
!f cust!mer' Islamic business rules can n!t be chan#ed and n!t amendable by individual !r
c!m)any' Uni%ue rules are f!r ever and f!r every!ne'
In this Pa)er, 0e have analyzed the Islamic Mar*etin# definiti!n and its im)!rtance as an
ec!n!mic instituti!n, its effective t!!ls that affect cust!mers and success in business' 0e
have c!nsidered Mar*etin# mi1 2Pr!duct, Price, Place, Pr!m!ti!n and Pe!)le3 in c!m)any
systems acc!rdin# t! ,!ly Quran and Islamic 4a+s' 5hen, have em)hasized !n strate#ic
!utl!!* !f business-s c!m)etitive advanta#e and #iven s!me e1am)les fr!m ec!n!mic
instituti!ns mar*etin# mi1 differences'
Finally, +e have tried t! sh!+ a #uideline t! Islamic mar*etin# mi1, ada)tin# +ith Muslims
needs, c!m)r!misin# the %uality !f services !r )r!ducts !ffered t! cust!mers, and
surrenderin# the )r!fit mar#ins !f business, elevatin# the standards !f behavi!r and als!
livin# !f traders and c!stumers, reflectin# the c!rrect !r#anizati!n-s s!urces6 mi1ed +ell, and
ma*in# the advanta#e and standards !f business +!rld+ide !ne'
Key words( ,!ly Quran, Islamic mar*etin#, mar*etin# mi1, Islamic la+s, c!stumer,
business'
Introduction
Internati!nal mar*etin# )ractices, embedded in a str!n# ethical d!ctrine, can )lay a vital r!le
in raisin# the standards !f business c!nduct +!rld+ide, +hile in n! +ay c!m)r!misin# the
%uality !f services !r )r!ducts !ffered t! cust!mers, !r surrenderin# the )r!fit mar#ins !f
businesses' Adherence t! such ethical )ractices can hel) t! elevate the standards !f behavi!r
and thus !f livin#, !f traders and c!nsumers ali*e' A#ainst this bac*#r!und, this )a)er
endeav!rs t! identify the salient features !f the Islamic frame+!r* !f Internati!nal Mar*etin#
.thics' In )articular, it hi#hli#hts the ca)abilities and stren#ths !f this frame+!r* in creatin#
and sustainin# a str!n# ethical internati!nal mar*etin# culture' At the heart !f Islamic
mar*etin# is the )rinci)le !f value7ma1imizati!n based !n equity and justice 2c!nstitutin# "ust
dealin# and fair )lay3 f!r the +ider +elfare !f the s!ciety' $elected *ey internati!nal
mar*etin# issues are e1amined fr!m an Islamic )ers)ective +hich, it is ar#ued, if adhered t!,
can hel) t! create a value l!aded #l!bal ethical mar*etin# frame+!r* f!r M89s in #eneral,
:
and establish harm!ny and meanin#ful c!!)erati!n bet+een internati!nal mar*eters and
Muslim tar#et mar*ets in )articular'
5he Islamic reli#i!us )ers)ective +arrants c!nsiderable im)!rtance in the field !f #l!bal
business ethics f!r five reas!ns' First, Islam )r!vides a frame+!r* that sha)es the m!ral and
ethical behavi!r !f a #r!+in# number !f Muslim c!nsumers ar!und the +!rld' 5hese
c!nsumers c!nstitute ab!ut !ne %uarter !f the t!tal +!rld )!)ulati!n and re)resent a ma"!rity
in m!re than ;< c!untries' $ec!nd, an increasin# number !f Muslim c!untries re)resent s!me
!f the m!st affluent c!nsumers in the +!rld' Islamic financial instituti!ns, f!r e1am)le,
mana#e !r c!ntr!l funds +!rth ar!und =>< billi!n 2?!dney, @<<A3' 5hird, there has been an
increasin# level !f f!rei#n investment in Muslim c!untries !ver recent years' F!urth, there is
a #r!+in# m!mentum t!+ards the f!rmati!n !f a Muslim tradin# bl!c*' And fifth, the current
)!litical m!!d indicates that there a))ears t! be a definitive )ush t!+ards #reater
Islamisati!n !f c!untries +here Muslims are in the ma"!rity 2e'#' Iran, Malaysia, .#y)t,
Al#eria, Pa*istan, $udan, Af#hanistan, t! name but a fe+3 in the f!rm !f a return t! the
a))licati!n !f the Islamic la+ 2$hariBah3 t! all facets !f life and th!u#ht'
5he Islamic financial system br!adly refers t! financial mar*et transacti!ns, !)erati!ns and
services that c!m)ly +ith Islamic rules, )rinci)les and c!des !f )ractices' 5he la+s and rules
!f the reli#i!n re%uire certain ty)es !f activities, ris*s !r re+ards t! be either )r!hibited !r
)r!m!ted' 0hile Muslims underta*in# financial transacti!ns are enc!ura#ed t! use financial
instruments that c!m)ly +ith these rules, !ther invest!rs may find the a))eal !f these
instruments fr!m an ethical stand)!int'
Islamic la+s and rules are *n!+n as Shariah and are als! referred t! as Islamic "uris)rudence'
Shariah #!verns all as)ects !f Islamic matters includin# faith, +!rshi), ec!n!mic, s!cial,
)!litical and cultural as)ects !f Islamic s!cieties' 5he rules and la+s are derived fr!m three
im)!rtant s!urces, namely the ,!ly Quran 2the h!ly b!!* !f the reli#i!n !f Islam3, Sunnah
2the )ractice and traditi!n !f the Pr!)het Muhammad s'a'+'3 and ijtihad 2the reas!nin# !f
%ualified sch!lars3' Further elab!rati!n and inter)retati!n !f the rules dictated by the ,!ly
Quran and Sunnah are )r!vided by %ualified sch!lars in Islamic "uris)rudence via ijtihad !r
an inter)retative )r!cess +hich is carried !ut +ithin the frame+!r* !f Quran and Sunnah'
M!dern Islamic financial )r!ducts and services are devel!)ed usin# t+! different
a))r!aches' 5he first a))r!ach is by identifyin# e1istin# c!nventi!nal )r!ducts and services
that are #enerally acce)table t! Islam, and m!difyin# as +ell as rem!vin# any )r!hibited
elements s! that they are able t! c!m)ly +ith Shariah )rinci)les' 5he sec!nd a))r!ach
inv!lves the a))licati!n !f vari!us Shariah )rinci)les t! facilitate the !ri#inati!n and
inn!vati!n !f ne+ )r!ducts and services'
5he Islamic mar*etin# )rinci)les c!mbine a value7ma1imizati!n c!nce)t +ith the )rinci)le
!f C"usticeB f!r the +ider +elfare !f the s!ciety' 5hese )rinci)les !ffer a means t! create value
and elevate the standard !f livin# !f )e!)le in #eneral thr!u#h c!mmercial )ursuits' 5he
Islamic ethical #uidelines ensure res)ect f!r, and the individual freed!m !f, b!th ban*ers and
cust!mers' Islamic ethics dictate that under n! circumstances sh!uld mar*eters e1)l!it their
cust!mers !r in any +ay inv!lve themselves in dish!nesty, fraud !r deceit' Any unethical
mar*etin# )ractice d!es an in"ustice, +hich, by definiti!n, ne#ates the c!nce)ts !f
br!therh!!d and e%uality !f humanity that f!rm the c!re !f the Islamic visi!n 2$aeed, Ahmad
and Mu*htar, @<<:3' 5hus, ad!)tin# the Islamic mar*etin# ethics ensures that the seeds !f
harm!ny are )lanted and a )r!)er !rder in s!ciety is )r!vided, thereby enhancin# the di#nity
!f, and u)h!ldin# the ri#hts !f human bein#s'
@
The 4 Cs Customer ers!ecti"e
5! define Islamic Mar*etin# Mi1 in terms !f the traditi!nal DAPsE !f Mar*etin# is a fall bac*
t! the old days !f mar*etin#' As +ith many as)ects !f traditi!nal business, t!day-s mar*et
demands an ad"ustment t! see thin#s fr!m your customer's perspective'
5he DA 9E a))r!ach t! mar*etin# is described bel!+ and f!ll!+s the You Marketing
)hil!s!)hy !f )uttin# the cust!mer 7 you 7 first' 5he DA9sE chan#es mar*etin# mi1
definiti!n fr!m Pr!duct, Price, Place and Pr!m!ti!n t! Customer Value, Cost, Convenience
and Communication'
5he DA 9sE mar*etin# mi1 definiti!n see*s t! turn traditi!nal mar*etin# thin*in# !n it-s head
by l!!*in# sales and mar*etin# in a cust!mer7centric +ay' Instead !f l!!*in# at h!+ each
as)ect !f mar*etin# is seen by the business, y!u l!!* at these fr!m the cust!mer-s
)ers)ective'
5he )!int in usin# DA 9sE instead !f DA PsE is n!t an e1ercise in semantics' ?ather, *ey int!
the thinking behind the e1ercise +hich is t! #et y!u t! see thin# fr!m y!ur customers' point
o vie!'
Customer #alue (Not Product!)
A product is s!methin# y!u ma*e +hich )e!)le c!me and buy' ,!+ever, t!day, y!u can n!
l!n#er succeed by ma*in# !hat you !ant and must instead find !ut !hat customer's !ant'
F!cusin# !n Customer Value all!+s y!u t! reset y!ur )erce)ti!ns ar!und +hat it is y!u are
creatin# and brin#in# t! the mar*et, be it a )r!duct, service !r s!me !ther value' .verythin#
be#ins and ends +ith y!ur cust!mer and y!u e1ist t! serve their needs'
Value is +hat y!ur cust!mer is c!ncerned ab!ut, n!t y!u, y!ur fabul!us )r!duct !r anythin#
else y!u d!' Value is h!+ y!u define mar*etin# mi1 D)r!ductsE and +hat y!u sh!uld see* t!
en#a#e y!ur cust!mer +ith' It is the value y!u )r!vide that defines y!u in the mar*et)lace'
Cost (Not Price!)
Instead !f thin*in# !f price as s!methin# y!u char#e, thin* !f cost as s!methin# cust!mers
)ay' 5his sim)le ad"ustment !nce a#ain !)ens u) a +h!le ne+ +ay !f thin*in# ab!ut sales
and mar*etin#'
0hen y!u define mar*etin# mi1 c!st y!u tune int! the customer dilemma !f decidin# h!+ t!
s)end limited money t! satisfy unlimited !ants' Are y!u )r!vidin# en!u#h ca)ital t! c!m)ete
effectivelyF
G!ur m!tivati!n in #!in# t! mar*et sh!uld n!t be t! ma1imize y!ur #ain but t! ma"imi#e
customer value' 5heref!re, y!u sh!uld as* h!+ y!u can )r!vide m!re f!r the same c!st t! the
cust!mer instead !f as*in# t! ma*e m!re )r!fit fr!m a )r!duct'
H
Con"enience (Not Place!)
5he day is n!t far !ff +hen the ma"!rity !f sh!))in# +ill n!t ta*e )lace in sh!)s !r thr!u#h
the traditi!nal distributi!n channels !f business' G!ur cust!mers t!day are #!verned by
)urchase +hen, +here and h!+ it is c!nvenient t! them'
5hin*in# ab!ut c!nvenience n!t !nly all!+s y!u t! !)en u) t! ne+er +ays !f c!nnectin#
+ith cust!mers and distributin# )r!ducts, but hel)s y!u shift int! the mindset !f )r!vidin# an
optimum overall e"perience f!r cust!mers'
5! define mar*etin# mi1 in terms !f convenience reminds y!u that cust!mers t!day are very
$usy and have many choices' It is n! l!n#er y!ur ri#ht as a business !+ner but a privilege
+hen cust!mers ch!!se y!u' Ma*e it as easy as )!ssible f!r them t! d! s!'
Communication (Not Promotion!)
5he final ne+ mar*et mi1 definiti!n re)laces the traditi!nal n!ti!n !f DPr!m!ti!nE +ith
Communication' 5his final c!nce)t !f h!+ y!u define mar*etin# mi1 fr!m the cust!mer-s
)ers)ective ties int! creatin# Interactive Mar*etin# 9!mmunicati!n'
DPr!m!ti!nE hear*ens bac* t! the day-s !f mass marketing +hich d!es n!t +!r* anym!re'
Iust li*e y!u cann!t sim)ly build a D#!!d )r!ductE and e1)ect )e!)le t! buy it, s! cust!mers
n! l!n#er believe everythin# y!u say at face value'
Instead !f virtu!us )r!n!uncement ab!ut h!+ #!!d y!ur )r!duct !r service is, cust!mers
t!day see* t! be engaged and have meaningul interactions +ith y!u' G!u must theref!re
strive f!r t!o%!ay communication and $uilding relationships
Islamic Marketing Mix
In definin# Islamic Mar*etin# ethics, $aeed, Ahmad and Mu*htar, 2@<<:3 state that Islamic
mar*etin# ethics based !n the )rinci)les !f "ustice and e%uity in Islam differs fr!m secular
ethics in many +ays' 5hey discussed the three characteristics !f mar*et ethics fr!m the
Islamic )ers)ective' Firstly, Islamic ethics are based !n QurBanic c!mmandments and leave
n! r!!m f!r ambi#u!us inter)retati!n by mar*etin# e1ecutives t! suit their individual +hims
and desires' $ec!ndly, the main difference is their transcendental as)ect !f abs!luteness and
n!n7malleable nature'
5hirdly, the Islamic a))r!ach em)hasizes value7ma1imizati!n in vie+ !f the #reater #!!d !f
the s!ciety rather than the selfish )ursuit !f )r!fit ma1imizati!n' $uch )r!)erties #rant
Islamic ethics a tremend!us ca)acity t! )enetrate human c!nscience and are ca)able !f
influencin# the behavi!r !f mar*etin# e1ecutives fr!m +ithin'
9!mmercial activity fr!m an Islamic )ers)ective is #!verned by t+! )rinci)les(
2i3 $ubmissi!n t! the m!ral !rder !f J!d,
2ii3 .m)athy and mercy t! J!dBs creati!ns +hich im)lies refrainin# fr!m d!in#
harm t! !thers and thus )reventin# the s)read !f unethical )ractices'
In this )a)er, an attem)t is made t! analyze the five Ps !f mar*etin# mi1 +ithin the
c!nte1t !f Cmar*etin#B as determined by Islamic ethics' 5he five Ps are( )r!duct, )rice,
)r!m!ti!n, )lace and )e!)le'
A
Pe!)le
Pr!duct
Pr!m!ti!n Place
Price
Islamic
Marketing
Mix
$% roduct& roduction rocess
5he devel!)ment !f Islamic )r!ducts sh!uld be visualized %uite differently as c!m)ared t!
0estern thin*in#' 5he Islamic )ers)ective inc!r)!rates m!ral and transcendental elements
+ithin the )r!ducti!n decisi!n7ma*in# )r!cess in )r!duct devel!)ment and is #uided by the
)rinci)les !f Islamic business ethics' 5hese )rinci)les dictate, as Ibn al7U*hu++ah 2:KHL3
remar*ed, that firstly, the )r!duct sh!uld be la+ful and n!t t! cause dullness !f mind in any
f!rm' $ec!ndly, the )r!duct must be asset bac*ed' 5hirdly, the )r!duct must be deliverable
since the sale !f a )r!duct is n!t valid if it cann!t be delivered' F!urthly, there is a need !f
identificati!n !f e1tra c!st7added features that mi#ht materially chan#e the )r!duct !r im)act
!n the buyerBs )urchase decisi!ns' Fifthly, all )arties intend t! dischar#e their !bli#ati!ns,
financial and !ther+ise, in #!!d faith6 and sh!uld be based !n )rinci)le !f the "ustice,
fairness and e%uity'
Under the Islamic a))r!ach, the )r!ducti!n )r!cess has t! be #uided by the criteria !f the
value and the im)act !f the )r!duct u)!n the +h!le s!ciety' 5his is due t! the hi#hest
im)!rtance #iven t! the actualizati!n !f the !)timum +elfare !f a human bein# and s!ciety'
5he )rimary !b"ective !f the devel!)ment !f suitable )r!duct is t! deliver, elevate and satisfy
basic human needs' Miller 2:KK>3 su##est that the main thrust behind unethical decisi!n7
ma*in# !n the )art !f business )ers!ns t! )r!duce sub7!)timal )r!ducts is usually s!me f!rm
!f c!st7c!nsci!us strate#y' 5he Islamic )ers)ective, !n the !ther hand, enc!ura#es a s!cietal
and +elfare a))r!ach rather than decisi!ns based !n the )r!fit ma1imizati!n'
'% roduct ricing
Pricin# )!licies are, in the main, f!rmulated t! e1)l!it and mani)ulate human )sych!l!#y as
+itnessed by c!mm!n )ractice +hereby the rec!mmended retail )rice )rinted !n a )r!duct is
!ften substantially hi#her than +hat retailers actually char#e' 5he aim !f such )ricin# )!licies
is t! #ive cust!mers a false im)ressi!n that they are in fact #ettin# a bar#ain'5his ty)e !f
)ractice is banned under Islamic la+' Islam )r!hibits #ettin# s!methin# t!! easily +ith!ut
hard lab!r, !r receivin# a )r!fit +ith!ut +!r*in# f!r it'
Furtherm!re, it is n!t all!+ed t! chan#e a )rice +ith!ut alterin# the %uality !r %uantity !f the
)r!duct because this is cheatin# the easy7#!in# cust!mer f!r illicit' Islam als! )r!hibits false
)r!)a#anda !r )ublicity !n the )art !f mar*eters re#ardin# the )!siti!n !f demand and su))ly
thr!u#h the media' It sh!uld be )!inted !ut that Islam d!es n!t )r!hibit )rice c!ntr!ls and
mani)ulati!ns t! meet the needs !f the mar*et' It means that the Islamic ethics all!+s s!me
time in +hich t! char#e hi#her )rices as a result !f natural scarcity !f su))ly !f a #iven
c!mm!dity !r settin# )rice ceilin#s t! curb !))!rtunistic tendencies am!n# merchants'
Islamically, self7!)eratin# mechanism !f )rice ad"ustments and healthy c!m)etiti!n are t! be
enc!ura#ed 2al7QurBan, LH(@>3' ,!+ever, the essential c!nditi!ns f!r the successful !)erati!n
!f such a mechanism dictate that there sh!uld be n! c!rner mar*et, n! h!ardin#, n!
un"ustified )rice mani)ulati!n, and n! restricti!n !n trade' Once the sec!nd 9ali)h Umar Ibn
al7Mhattab )assed by ,atib ibn Abi alta-ah and f!und him sellin# raisins at a much l!+er
)rice +ith the intenti!n !f )uttin# his c!m)etit!rs t! l!ss' 9ali)h Umar Ibn al7Mhattab t!ld
him( D.ither enhance y!ur rate !r #et a+ay fr!m !ur mar*etE '
5he h!ardin# !f any )r!duct is strictly )r!hibited in Islam' ut the system !ffers fle1ibility if
c!m)etin# mar*eters sell at !ne )rice am!unts t! c!erci!n and dist!rti!n !f the free mar*et !r
;
if it means very hi#h )r!duct )rices' Under these circumstances, !fficials !f the Islamic
#!vernment can brin# t!#ether mar*et leaders re)resentin# a )articular re#i!n !r a )articular
c!mm!dity, in the )resence !f !thers' 5he )ur)!se is t! reach a c!nsensus !n )rice level that
+!uld n!t be un"ust t! the c!nsumer and at the same time rea) reas!nable )r!fits t! the
mar*eters' 5he *ey im)etus t! intervene !n such an ad7h!c basis is t! )revent Dblac*7
mar*etin#E and Dc!ncealment !f essential f!!dstuffsE'
Ibn al7U*hu++ah 2:KHL3 discusses many ty)es !f c!ntem)!rary Dethical la)sesE in )ricin#'
.1am)les #iven by him include +hen real !+ners !f the )r!ducts )retend that they are n!t
the !+ners in !rder t! hi*e u) the )rice by ma*in# c!nsumers believe that an even hi#her
)rice +!uld be char#ed by the real traders, !r +hen there are c!llusive a#reements' ,e,
theref!re, em)hasizes the r!le !f a )ublic +elfare !fficial t! ensure that )rices remain fair and
"ust by curbin# any ethical la)ses in )rice settin#' ,e !bserves that Dthe )ublic +elfare
!fficial must see that a br!*er receives his c!mmissi!n !nly fr!m the seller and must n!t
cause the )rice t! be abated in c!llusi!n +ith the buyerB 2Ibn al7U*hu++ah, :KHL(A3' All
unethical la)ses in )ricin# are tantam!unt t! Cin"usticeB and are sinful' ,ence, all )r!fits
earned thr!u#h such un"ustified )rices are n!t !nly unethical, but they infrin#e u)!n the
uni%ue status !f manN+!man and hisNher r!le and res)!nsibilities as vie+ed under the Islamic
frame+!r*' 5he Pr!)het Muhammad 2Peace be u)!n him3 remar*ed, DD! n!t raise )rices in
c!m)etiti!nE 2al78a+a+i, @(@O<3' In !rder t! eliminate this ty)e !f Cin"usticeB, the mar*eter
and cust!mer must ac*n!+led#e that they have hi#her m!ral res)!nsibilities !n earth rather
than be )re!ccu)ied +ith )r!fit ma1imizati!n al!ne'
(% roduct romotion )ules
5here is n! r!!m in Islam t! "ustify any c!ver u) !f dece)tive )r!m!ti!nal behavi!r' Al7
QurBan c!ndemns all f!rms and sha)es !f false asserti!n, unf!unded accusati!n, c!nc!cti!n
and false testim!ny 2al7 QurBan, AH(:K3' In terms !f Islamic mar*etin# ethics, it is unethical
f!r the salesman !r cust!mer relati!n advis!r 29?A3 t! !ver7)raise his )r!ducts and attribute
t! them %ualities +hich they d! n!t )!ssess 2Ibn al7U*hu++ah, :KHL3' Furtherm!re, #ivin# a
false im)ressi!n !f any *ind t! )r!m!te !r sell a )r!duct is strictly )r!hibited +ithin the
Islamic ethical frame+!r* !f internati!nal mar*etin# )ractices' 5heref!re, in the area !f
)r!duct )r!m!ti!ns, Islamic mar*etin# ethics +ill f!ll!+ the f!ll!+in# rules(
av!idance !f false and misleadin# advertisin#6
re"ecti!n !f hi#h )ressure mani)ulati!ns, !r misleadin# sales tactics6
av!idance !f sales )r!m!ti!ns that use dece)ti!n !r mani)ulati!n'
Acc!rdin# t! Islamic ethics, a seller is a )ers!n +h! feels acc!untable t! J!d' ,e sh!uld be
h!nest and fair in his mar*etin# activities' Only true d!cuments +hich reveal accurate
s)ecificati!ns in terms !f %uality, c!ntents, etc' +ill e1chan#e hands' 5! )ractice !ther+ise
c!nstitutes dis#raceful, dish!n!urable and shameful #ain thr!u#h )anderin#, deceit,
treachery, theft !r in"ustice' Acc!rdin# t! Islamic )rinci)les, mar*eters are re%uired t!
Ddiscl!se all faults in their #!!ds, +hether !bvi!us !r hidden6 t! d! !ther+ise is t! actP
fraudulentlyE' It is !bli#at!ry f!r the seller t! reveal all *n!+n defects +hich cann!t be seen
D!n the surfaceE and cann!t be f!und !ut by the Dcurs!ry #lanceE t! the )urchaser' In
additi!n, it is dictated that DA sale +ith!ut any sti)ulati!n ma*es it necessary that the thin#
s!ld sh!uld be free fr!m defectE' Mar*etin# discl!sure is manifested either by assurance
+hich +ill be #iven by +!rd !f m!uth !r in +ritin#, !r in s!me cases silence +ill mean
>
assurance' 5he Pr!)het Muhammad 2Peace be u)!n him3 e1)ressly c!ndemned all
mani)ulative )r!m!ti!nal behavi!ur statin# that, DOne +h! cheats us is n!t !ne !f usE '
In Islamic ethics, )r!m!ti!nal techni%ues must n!t use se1ual a))eal, em!ti!nal a))eal, fear
a))eal, false testim!nies and )seud! research a))eal, !r c!ntribute t! the dullness !f the mind
!r enc!ura#e e1trava#ance' 0ithin the Islamic frame+!r*, these meth!ds are unethical since
they are utilized )urely t! e1)l!it the basic instinct !f c!nsumers +!rld+ide +ith a vie+ t!
#ain )r!fits and #reater mar*et share' Furtherm!re, Islamic ethics strictly )r!hibits
stere!ty)in# !f +!men in advertisin#, and e1cessive use !f fantasy' 5he use !f su##estive
lan#ua#e and behavi!ur, and the use !f +!men as !b"ects t! lure and attract cust!mers are
als! n!t all!+ed'
4% lace* +istribution Channels
5he ethical dimensi!ns !f decisi!n7ma*in# )ertainin# t! distributi!n are !f #reat si#nificance
in the area !f mar*etin#' Physical distributi!n can be vie+ed as an inte#rated c!llecti!n !f
inf!rmati!n, )e!)le, e%ui)ment, and !r#anizati!n' In res)ect !f distributi!n !f )r!duct,
theref!re, Islamic financial instituti!ns +ill f!ll!+ the f!ll!+in# )rinci)les(
8!t mani)ulatin# the availability !f a )r!duct f!r )ur)!se !f e1)l!itati!n6
8!t usin# c!erci!n in the mar*etin# channel6
8!t e1ertin# undue influence !ver the re7sellers ch!ice t! handle a )r!duct'
It is n!t sur)risin# t! n!te that decisi!ns made !n the )r!fit ma1imizati!n )rinci)le are n!t
necessarily the m!st a))r!)riate f!r a s!cietyBs +elfare' Other cases !f unethical )ractices in
distributi!n include the usa#e !f )ac*a#in# desi#ns +ith!ut ade%uate security and )r!tecti!n
f!r the )r!duct, ina))r!)riate )ac*a#in#, and dan#er!us and t!1ic )r!ducts trans)!rted
thr!u#h )ublic hi#h+ays' Fr!m an Islamic )ers)ective, such treatment !f cust!mers is
unf!r#ivable and e%uates t! un"ust mar*etin# )ractices'
Acc!rdin# t! Islamic )rinci)les, distributi!n channels are n!t su))!sed t! create a burden f!r
the final cust!mer, in terms !f hi#her )rices and delays' f!r e1am)le, identifies, in )articular,
ethical la)ses in distributi!n channels as th!se +hich cause unnecessary delays in their
delivery, c!m)ellin# cust!mers t! return re)eatedly and thus causin# them unnecessary
inc!nveniences ' Islam d!es n!t )r!hibit a#ency re)resentati!n as a lin* in the mar*et t!
facilitate the m!vement and ac%uisiti!n functi!ns' 0ithin the Islamic ethical frame+!r*,
h!+ever, the main aim !f distributi!n channels sh!uld be t! create value and u)lift the
standard !f livin# by )r!vidin# ethically satisfact!ry services'
,% eo!le
Islam em)hasises the im)!rtance !f DfreeE and Dinde)endent "ud#mentE !n the )art !f the
cust!mer' 5he ability t! thin* rati!nally +hile ma*in# any decisi!n relatin# t! #l!bal
mar*etin# activities is a )rere%uisite in Islamic la+ ' 5he s!ciety at lar#e sh!uld n!t be
de)rived !f h!nest, free fr!m c!erci!n mar*etin# inf!rmati!n' A cust!merBs ri#ht t! ac%uire
such inf!rmati!n is his ri#ht and is indicative !f the status #iven t! him by Islam, as +ell as
!f the in#rained ri#hts !f his +ealth +hich he s)ends in )urchasin# )r!ducts and services' It
is the res)!nsibility !f the mar*eters n!t t! res!rt t! any f!rm !f c!erci!n and they must,
under all circumstances, have a re#ard f!r the intellectual inte#rity and a hi#her de#ree !f
O
c!nsci!usness !f the c!nsumers t! ensure that the hard earned m!ney !f cust!mers is n!t
+asted' 9!erci!n !r Ci*rahB 2Al7QurBan @H(O3, as defined by 5yler et al', 2:K>O(:AK:;<3, is
t! c!m)el a )ers!n t! d! a thin# +ith!ut his c!nsent' It f!ll!+s theref!re, that +henever s!me
c!ercive f!rce is a))lied f!r the )ur)!ses !f c!ncludin# a #l!bal mar*etin# deal, the
fundamental and vital c!nditi!n !f mutual c!nsent remains unfulfilled and the resultant
transacti!n is unethical and unla+ful' 5he Pr!)het Muhammad 2Peace be u)!n him3
)r!hibited a transacti!n c!ncluded under c!nstraints !r bay- al7Mudtarr 2Ahmad, :KK;(:@>3'
Acc!rdin# t! Islamic )rinci)les, se1ual a))eal, em!ti!nal a))eal, fear a))eal, subliminal
advertisin# and )seud! scientific claims all have elements !f c!erci!n +hich cause them t! be
cate#!rized as unethical as a means !f mar*etin#' An ethically s!und mar*etin#7mi1,
theref!re, dictates that cust!mersB decisi!n7ma*in# freed!m must be )r!tected fr!m all
elements !f c!erci!n'
Conclusion
5he Islamic financial system br!adly refers t! financial mar*et transacti!ns, !)erati!ns and
services that c!m)ly +ith Islamic rules, )rinci)les and c!des !f )ractices' 5he la+s and rules !f
the reli#i!n re%uire certain ty)es !f activities, ris*s !r re+ards t! be either )r!hibited !r
)r!m!ted' 0hile Muslims underta*in# financial transacti!ns are enc!ura#ed t! use financial
instruments that c!m)ly +ith these rules, !ther invest!rs may find the a))eal !f these instruments
fr!m an ethical stand)!int'
$!, the +ay t! reach cust!mers better and m!re effective than c!m)etit!rs must have the
a))r!)riate t!!ls and tactics, because the mar*ets are different and the differences are very
much t!#ether' 8! l!n#er )!ssible f!r all enter)rises unit c!m)le1 versi!n, the )eri!d !f $hah
Mey has finished, 9!m)anies f!r mar*et success in any a))r!)riate ty)e !f industry and
enter)rise ca)abilities and ec!n!mic )!+er must be a s)ecific mar*etin# mi1 tactics !r it can
be desi#ned and im)lemented' Our su##esti!ns are the Islamic five Ps 2)r!duct, )rice,
)r!m!ti!n, )lace and )e!)le3 t! c!untries ec!n!mic and industrial #r!+th'
)e-erences
AAOIFI 2@<<H3, $hariBa $tandards, 5he Acc!untin# Q Auditin# Or#anizati!n F!r Islamic
Financial Instituti!ns( Manama, ahrain'
Abul ,assan, Abdel*ader 9hachi, And $alma Abdul 4atiff, 2@<<L3 Islamic Mar*etin# .thics
And Its Im)act On 9ust!mer $atisfacti!n In 5he Islamic an*in# Industry, IMAU( Islamic
.c!n', V!l' @: 8!' :, P)( @O7A> 2A'D'N:A@K A','3
Al7 ?azi, M' 2:KL;3 5afsir Fa*hr Al7?azi' Hrd .diti!n, Dar Al7Fi*r, eirut'
Ali, Ahmad M!hamed, 2@<<:3, D5he $tate And Future Of Islamic an*in# On 5he 0!rld
.c!n!mic $cene,E $tatement Jiven On 5he Occasi!n Of 5he 4unche!n 9!7,!sted y 5he
Arab an*ers Ass!ciati!n Of 8!rth America And 5he Middle .ast Institute, 0ashin#t!n
D'9', U$A'
Al7Qur-an .n#lish 5ranslati!n And 9!mmentary 25he Meanin# Of 5he Jl!ri!us QurBan3
?endered y Abdullah Gusuf Ali 2:KLH3, Maryland2U$A3( Amana 9!r)!rati!n'
Ibn Al7U*hu++ah, DiyaB Al7Din Muhammad 2:KLH3 MaBalim Al7Qurbah Fi Ah*am Al7
,isbah, 5ranslated y ?euben 4evy, 4uza*, 4!nd!n'
L
Mamali, M!hammad ,ashim 2@<<<3, Islamic 9!mmercial 4a+, 9ambrid#e( 5he Islamic
5e1ts $!ciety'
Mahm!ud A' .l7Jamal'2 @<<O3 Inc!herence Of 9!ntract7ased Islamic Financial
Iuris)rudence In 5he A#e Of Financial .n#ineerin#, ?ice University'
Mohammad Saeed& 'aar () *hmed, Syeda%Masooda Mukhtar 2@<<:3 Internati!nal
Mar*etin# .thics Fr!m An Islamic Pers)ective( +lu!er *cademic ,u$lishers) ,rinted -n .he
/etherlands) 0ournal o 1usiness 2thics H@( :@O:A@'
$aeed, M', Ahmad, R'U' And Mu*htar, $'M' 2@<<:3 DInternati!nal Mar*etin# .thics Fr!m
An Islamic Pers)ectives( A Value Ma1imizati!n A))r!achE, I!urnal Of usiness .thics, H@(
:@O7:A@6 $ales)ers!n $ellin# ehavi!rs On 9ust!mer $atisfacti!n 0ith Pr!ducts'E I!urnal
Of ?etailin#, OH2@3( :O:7:LH'
$udin ,ar!n, 8urs!fiza 0an Azmi , 2@<<;3 Mar*etin# $trate#y Of Islamic an*s( A 4ess!n
Fr!m Malaysia, I!urnal Of Islamic an*in# And Finance, Ian7March @<<>'
0ils!n, ?!dney, 2@<<A3?e#ulat!ry 9hallen#es P!sed y Islamic 9a)ital Mar*et Pr!ducts
And $ervices,E 9entre F!r Middle .astern And Islamic $tudies, University Of Durham,UM'
K