Marketing Mix Management

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MARKETING MIX MANAGEMENTMARKETING MIX MANAGEMENT

FROM AN ISLAMIC PEERSPECTIVE:FROM AN ISLAMIC PEERSPECTIVE:

SOME INSIGHTSSOME INSIGHTS

PresentedPresented

byby::

Professor Muhammad A. Al Professor Muhammad A. Al--B Burae yurae y

P P rofessor rofessor

of Management of Management

CIM, KFUPM, Dhahran, S.A.CIM, KFUPM, Dhahran, S.A.

Victoria Management School Victoria Management School

August 2007 August 2007

INTRODUCTION INTRODUCTION

Marketing is a means of communication between customers and organization.Marketing focuses on identifying,

anticipating and satisfying customer needs.

It is an effective tool through which

customer¶s desire are explored throughadvertising and promotions.

False marketing trends has broughtnegative aspects in the social culture andcreated too much materialism which is notin harmony with the business ethic.

A strong need arises and calls for how to

change the current marketing trend andintroduce a new technique which constitutemarketing practices based on Islamic ethic,and social culture.

The objective of this paper is simply tosuggest marketing practices from anIslamic viewpoint.

The first objective of this paper is tointroduce marketing rules and regulations based on the Holy Quran and IslamicShariah.

The second objective to present a real casestudy and examine the application of Islamic framework in marketingmanagement practices.

MA RKETING IN ISL AM MA RKETING IN ISL AM

At the beginning it is appropriate to makeclear that Islamic approach in the businessis based on spiritual belief. Successfultycoons should not challenge these Islamicvalues irrespective of their success in the business.

Islam has developed a code of life dealingin all aspects of life either business,economic or social aspects that should beadhered to under all circumstances.

Islam has laid down basic principles of

business strategies. Marketers must serve

their goals within the rules and regulations

of Islamic Shariah as outlined in the Holy

Qur¶an. Islam stressed fair dealing in

business. Unfair margin of profits in the

business is prohibited in Islam.

RKETING M

IX ISSUES MA

RKETING M

IX ISSUES

In Islam, as in modern marketingtextbooks, four marketing mix issues have

been identified (Difference in practice and behavior not in theory):

1- Product

2- Price3- Place and

4- Promotion

Product Decisions:

The product which is being marketed

should be µhalal¶ and meet all requirementsof Islamic law.

It is also vital for the processors to processthose products which are permissible in

Islam and should conform to theenvironment friendly standards.

Islam forbids few commodities and itemsthat are harmful to the community or

individual, Prophet (pbuh) said:³ Don¶t cause damage, if so, it must beremedied´.

It is an obligation of the manufacturers andsuppliers that they should provide real andcorrect specifications of their products. Under no

circumstances the marketers hide any drawbacksof their products. Each product must havedetailed information about its contents andingredients as well as dates of expirations.

(Abu Hanifah incident)

Pricing Decisions Pricing Decisions::

Pricing decisions should be formulatedaccording to Islamic concepts andregulations. Some of these can be takeninto considerations and should beavoided :

1.. Maisir ± means getting something easily or getting profit without working hard for it.

2. Tatfif- means changing quality or quantity of

the product without changing price.3. An-Najash: An increase in price by a buyer unwilling to buy to induce others to buy.

4. To buy a commodity after it has been sold toanother person.

5. To receive farmers before entering town and buycheaply their products in order to sell highly.

Pricing Decisions Pricing Decisions -- contd contd

6. Ihtikar: hoarding or monopolizing aspecific good or commodity thus creatinga shortage so that the price would be veryhigh when they sell.

7. Iktinaz ± (Collecting and keeping goldand silver and not spending them in theway of Allah.) The Qur¶an specificallywarned those (who hoardup gold and silver, and spend them notin the way of Allah, announce untothem a painful torment)

In Islam price the essential conditions of asound self-operating of price adjustmentsare as follows:

a. Prohibition of Monopoly:

It means exclusively control the quantityand price of goods having intention to

decrease supplies as a result increase of the price of such goods. Monopoly (or Ihtikar)is forbidden in Islam.

b. Prejudicial and Unreasonable Pricing:

Price should not be fixed to deceive buyer or

having intention to eliminate competitors.

c. Prohibition of Usury and Other Practices

The Holy Qur¶an (2:278) clearly forbidsusury and discard it; and in (2:279) one cantake back the capital sum only: no excess.

Promotion Mix

Promotion means to introduce and present a product to the customer. It

includes advertising, personal selling, publicity and sales promotion.

To promote any products it is necessaryto disclose all of its defects, if any.

Promotion Mix:

Exaggeration in marketing practices is

not allowed in Islam.

Stereotyping of women in advertising is also

objectionable in Islam. Advertising should be

in accordance with the Islamic points of

view. No fraud, no vulgarity, no lying or deception ; no cheating are allowed throughout

the promotion campaign.

R egulations for Promotion:

The following are some of the regulationswhen engaging into promotion activities:

- Be honest - truthful and free from

deception

- Do not offer any wrongful promise; or

promises you cannot keep.

- Do not use celebrities to deceivecustomers.

MA RKETING PR ACTICES FRO M A N MA RKETING PR ACTICES FRO M A N

ISL AM IC PERSPECTIVE ISL AM IC PERSPECTIVE

National Biscuit & ConfectioneryCompany (NBCC). NBCC produces and

markets biscuits and confectionaries. In1987 its products comprised of three product lines, a dry biscuits line, cream biscuits line and hollow wafer line. This

was followed up with 3 flat wafer lines in1990, 1992, and 1993.

In 1994 the company launched major

diversification into the manufacturing of

salted Crisps. Concurrently, lines for the

manufacturing of pellet based snacks,extruded snacks and dip sticks were added.

Needless to say that all local ingredients

that make up the product are Halal.

Promotional Activities

NBCC has been also using various

conventional tools of promotion, whichadhere to basic ethical principals of

business. . The promotional tools can

generally be termed as Islamic with somereservation (as will be seen below).

The case of a promotional campaign:

NBCC launched the 'Educational Flippo'(a plastic disc). NBCC launched acampaign in which customers were urgedto collect these 'flippo' discs in an albumcontaining five sheets for a total of 100'flippo' discs. While this campaign wassuccessful, the promotion itself can be

questioned from an Islamic perspective,mainly on the following grounds:

lippo' discs bear pictures or parts of a body and pictures, which Islam has strongreservations against it. This is also clearlyin violation of Islamic ethics and values.

Another major concern has been that somechildren use the disc in a game; a kind of gambling, which is strongly forbidden byIslam.

Children, their parents and other customers buy the product not for its value, or use butto collect these discs for the prizes.

CONCLUSION

The purpose of this study was to outlinemarketing management and suggest ideal practices from an Islamic perspective. Based

on the Holy Quran, Islamic Traditions andShariah Law, the paper suggests a number of ideal marketing practices for managing thedecisions related to some elements of the

marketing mix namely: product, pricing and promotion. A few suggestions have also been provided to ensure conformity withIslam.

Marketing Mix Management

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