Essay: Islamic marketing

Islamic marketing

Overview:

Islamic Marketing as a new discipline aims to set the start point and basis of an advance Islamic Marketing, it gets a part in a very distinguished role in developing and raising the standards of business conduct worldwide, so being faithful to such ethical practices can help to raise the standards of behavior of traders and consumers alike.

For Muslims, Islam is not just a religion, but also a way of life that affects how they eat, dress and even conduct business. And according to the marketing concepts there are a countless factors, personality to culture, have been considered to explain the Muslims consumer behavior.

In Islamic markets the religion affects the social and cultural environments in which customers reside and conduct their individual behaviors and manners. Even if the degree to which individual members adhere to the religious conventions varies, the fact is that the preferences and tastes are considerably shaped by the value giving rules and customs of their surrounding religion.

The Growth of the target market:

The growth of Muslim population around the world is an attractive segment for marketers.

Estimated population 1.3-1.7 billion, Muslims are widely distributed around the world, diverse colors, ethnic groups, languages, cultures, United in faith

As Islamic capital grew, a new style of consumption emerged in every domain of life. The growth of the Islamic marketing with the development bourgeoisie coincided of Islamic capital and markets starts during the 1980s and 1990s. Soon a wide variety of products positioned as “Islamic, “ranging over summer resorts, clothing, decorative objects and food, toys and games, even financial products through special Islamic banks became available to the newly emerging, religiously oriented middle/upper classes. Muslim market as the fastest-growing segment of the middle class is a sign of a newly confident Islamic identity, they have big families an average of 3.4 children so they buy big cars; they spend money on home decoration and twice-yearly vacations and this based not on politics but on personal lifestyles. "Muslims will spend their money more readily on halal food and products than on political causes," says Zahed Amanullah, (European managing director of the California-based Zabihah.com, an online guide to the global halal marketplace).

The growth of the market:

Islamic businesses progressed rapidly and began to compete in almost all the sectors of the economy. Throughout the world, Muslims are becoming increasingly active as investors and manufacturers, bankers and traders, competitors and suppliers, and becoming real partners in a global economic system. Adopting the logic of contemporary capitalism, the religious and conservative small-scale rural businesses grew into bigger companies operating in the cities. These businesses created not only an alternative market for those who were religious but also a consumer segment that had money to spend in these markets from fast food to fashion, the sector is thriving.

Interestingly, as the market grew, it began to attract the attention of multinational companies. For example, in July 2005 Colgate Palmolive introduced misvak-flavored toothpaste to the Turkish market. Misvak is a stick of wood taken out of the toothbrush tree and beaten into fibers at one end to be used as a toothbrush. Before the advent of toothpaste and toothbrushes, people in the Middle East used misvak to clean their teeth and freshen their breath. According to the Muslim faith, because it was used by the prophet, cleaning the teeth with misvak is regarded as part of the sunn’ah.

A 2007 report from the global ad agency JWT describes the Muslim market thus: "It’s young, it’s big, and it’s getting bigger." Parts of it are well-educated and wealthy. The buying power of American Muslims alone is estimated at a hefty $170 billion annually.

For non-food companies like South Korea’s LG and Finnish cell-phone giant Nokia, targeting Muslims is also big business. LG offers an application to help users find the direction of Mecca, while Nokia has free downloadable recitations from the Koran and maps showing the locations of major mosques in the Middle East.

Muslims consumer behavior:

Reaching the Muslims target requires an understanding of their culture, beliefs and preferences, and from this point of view we have to start.

Islam teaches the consumer to have a balanced approach toward spending, always maintaining a balance between personal needs and those of society and also between the provisions of this world and those of the life to come. Islam calls only toward moderation.

Islam has a two-fold meaning in Arabic: peace, and submission to God. This submission requires a fully conscious and willing effort to submit to God.

The Muslim consumer Sources of law:

• The Quran (Muslim Holy book)
• The traditions of the Prophet
• The consensus of learned Muslims on emerging issues derived from the Quran and the traditions of the Prophet (PBUH)
• The laws of the land as long as they do not contradict God laws

The sacred book, the Koran, prescribes a way of life which each Muslim must follow. Other injunctions and commandments concern virtually all facets of one’s personal, family and civic life. These include such matters as diet, clothing, personal hygiene, interpersonal relations, business ethics, responsibilities towards parents, spouse and children, marriage, divorce and inheritance, civil and criminal law, fighting in defense of Islam, relations with non-Muslims, and much more. The Muslim consumer practice five core elements: the declaration of faith in Allah and Muhammad, the prayer, fasting during the month of Ramadan, charity (Zakat), and the pilgrimage (Hajj) to Makkah, and others (e.g. being a good neighbor).

The Muslim consumption pattern:

Muslims follow certain standards such as halal (permissible) which referred to the slaughter of animals. The market of permitted food (Hallal) is considerable even in a Christian country, like France, the 4.5 million Muslims in France, 7.5% of the total population, consume 300 000 tons of meat products every year through 3000 independent butcheries and chain supermarkets for a total sale of 3 billion Euros.

By the numbers 16% Halal’s share of global food industry , $632 billion— Annual halal food market.

In Islam, the dietary requirements also apply to medical injections and tests when admitting, screening, or treating patients (especially concerning materials that contain gelatin extracted from animal sources). In addition, alcohol free medications are preferred. It is considered to be allowed if there is a real health danger if the patient does not take these drugs, and if these drugs cannot be replaced by any other legal product.

Islamic dietary terms:

1. Halal- lawful : Allowed (Halal):

• Properly slaughtered cattle, sheep, goats, deer, camel, chicken etc.
• All sea foods without the need for slaughter
• All non-poisonous vegetables and fruits

2. Haram- unlawful:

• Dead meat or carrion
• Swine and all products and ingredients derived from swine
• Flowing or congealed blood
• Foods dedicated to idols
• Intoxicants of all types
• Carnivorous animals with fangs and birds of prey with sharp claws

3. Makrooh- discouraged

4. Mashbooh- suspect

Islamic marketing business ideal:

1. Only lawful activities are permitted (Halal).
2. All transactions involving usury/interest are prohibited (Haram).
3. Dealing in intoxicants, gambling and games of chance is prohibited.
4. Promise must be kept and truth must be told.
5. Undercutting another in business prohibited.
6. Brokering is prohibited

Advertisement and promotions:

1. Interest free deals can be attractive to Muslims
2. Buy one get one free has no issues and is attractive
3. Cash deals are better than offering a chance to win. The latter may be seen as gambling which is prohibited
4. Auction selling may be seen as undercutting one another in business, which is prohibited

The dynamic of Islamic prospective in the business world:

Religion affects marketplace activities. Religious traditions and institutions can influence the rules of trade, prohibit or obligate the trade of certain products, and affect the time and place of markets (Mittelstaedt2002).

Spiritual practices and beliefs translate into demand for certain goods and services; markets develop to meet the demand. Market forces, however, also affect religious identities and practices. Through political, institutional, moral, and competitive mechanisms, markets can influence the parameters of religion and force organizations to negotiate being faithful and competitive, and believers to reevaluate what it means to be faithful. What are traded in the marketplace today are not only the products themselves but also their meanings and lifestyle connotations.

At the heart of Islamic marketing is the principle of value-maximization based on equity and justice (constituting just dealing and fair play) for the wider welfare of the society. So if the multinational corporations as an international marketers and investors want to play a good role in now a day’s global economy they have to realize and understand the Islamic perspective and it’s dynamic in the business world in order to communicate with the approach of the Muslims consumers and also to avoid the risk of being clash or alienating with a large part of their target market (Rogers et al., 1995).

The Islamic religious perspective warrants considerable importance in the field of global business ethics for five reasons:

1. Islam provides a framework that shapes the moral and ethical behavior of growing numbers of Muslim consumer around the globe which equal to one quarter of the total world population and represent a majority in more than 50 countries.
2. Muslim countries represent some of the most affluent consumers in the world.
3. Increasing level of foreign investment in Muslim countries over recent years.
4. There is a growing momentum towards the formation of a Muslims trading block
5. There is a strong push towards greater islamisation of countries where Muslims are in the majority in the form of a return to the application of the Islamic law ( Shari’ah) to all facets of life and thought.

And this is true when we talk about countries which have laid down strict Islamic rules and codes of conduct in all activities of life including international marketing such as Malaysia, Saudi Arabian, and Iran.

Islamized product:

Commercializing Islam among many new products offered by global market such:

• Mecca Cola: Islamic version of Pepsi and Coca Cola, Lunched in 2002 after the Muslim boycott to Us products Target Market: Arab Muslim countries and muslim minorities all over the world , French firm capitalises on anti-US feeling to sell cola. Mecca Cola “Think Muslim, drink Muslim”, says new rival to Coke
• In Damascus, Fulla’s creator, NewBoy Design Studio, introduced her in November 2003, and she has quickly become a best seller all over the region a Fulla doll sells for about $16, in a country where average per capita income hovers around $100 per month. Fulla roughly shares Barbie’s size and proportions, but steps out of her shiny pink box wearing a black abaya and matching head scarf. She is named after a type of jasmine that grows in the Levant, and although she has an extensive and beautiful wardrobe (sold separately, of course), Fulla is usually displayed wearing her modest "outdoor fashion."

Global events and the” Muslim consumer”:

Impact of Middle East conflicts:

• Danish cartoons : “ We have taken 40 years to build up a very big business in the Middle East, and we’ve seen it come to a complete stop in five days.” Astrid Gade Niels Arla spokeswoman.
• Cone-demined … ‘spinning whirl’ ice creams look similar to the world Allah written in Arabic script. Ice creams are being withdrawn from Burger King — because a design on the lid looks like the word Allah.