Marketing based on Islamic perspective

1. Chapter 7: Marketing & Islamic Business Ethics
Islamic Business School (IBS)
2013
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2. INTRODUCTION
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What is Marketing?
Why we do need Islamic Marketing?
What is the Islamic principles in the design and
Marketing strategy?
What is the different between Islamic Marketing and
traditional?
What is the current marketing issues? In the world
overview.
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3. Conti…..
Islam places the highest emphasis on ethical
values in all aspects of human life. In Islam, ethics
governs all aspects of life.
 Ethical norms and moral codes discernable from
the verses of the Holy Qur’an and the teachings
of the Prophet (pbuh) are numerous, far reaching
and comprehensive. Islamic teachings strongly
stress the observance of ethical and moral code in
human behaviour.
 Moral principles and codes of ethics are
repeatedly stressed throughout the Holy Qur’an.
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4. Issue of Riba In Islamic
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The most difficult issues concern for fairness in business
dealings is its prohibition of business transactions that
call for charging riba (usury and interest).
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Riba in Quran means paying money for the use of
money.
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From the Islamic perspective, with its bias towards fair
distribution of wealth and social justice, the Qurans
strictures against riba have implications for international
political economy
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5. ISLAMIC MARKETING
A process and strategy of fulfilling need through Halal
products and services with the mutual welfare of both
sellers and buyers.
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not at all about increasing profits but concerns
community welfare
Achieve material and spiritual needs of consumers
Never compromise with unethical practices
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6. ISLAMIC MARKETING STRATEGICS
Satisfy to customers based on the human values, marketing
cultures, and Islamic rules and regulations.
 Focus on religious rules and ethics
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Combine a value-maximization concept with the principle of
‘justice’ for the wider welfare of the society (Hassan et al.
2008)
 enhancing the dignity and upholding the rights of human
beings within the society
In any marketing plan, the three keys processes in order are:
1. Strategy: The thought process behind the plan
2. Tactics: The execution using tools based on the strategy
3. Measurement : Monitoring success, short and long term
results
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7. What is ETHICS?
 The set of moral principles that distinguish what is
right from what is wrong
 Consists of two fold objective
 In Islam, ethics governs all aspects of life. (based on
Quran and Sunnah)
Principles Governing Islamic Ethics
 Unity
 Iman (faith)
 Trusteeship
 Balance
 Justice
 Free will
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8. Dangerous Business In The Country Or Community
MONOPOLY
 Monopoly (ihtikar) comes from the word hakr, which means
collecting and controlling goods. Ihtikar used by scholars of
Islamic jurisprudence to assert the privilege to collect and
control of goods in an effort to anticipate the need for price
increases. In other words, means the process of monopolizing
ihtikar products to result in price increases.
 Increasing the price
 Decreasing supply sufficiently
COPYRIGHT
 Trade names, trademarks, copyright and patents are all rights
which belong exclusively to their owners. In modern times
they have come to have a considerable financial value. These
rights are recognized according to sharee’ah, and they should
not be violated.
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9. DRUGS AND ALCOHOL
Alcohol Is Prohibited
Alcohol is clearly forbidden in several verses of the Qur'an. Since
intoxicants are prohibited in amounts both large and small, Muslims avoid
alcohol even in baking, cooking, or in medicinal substances.
 Modern Drugs
Many of the illicit drugs available today were not yet known at the time of
the Prophet Muhammad and the revelation of the Qur'an. Modern scholars
have used principles of Islamic law to derive judgments regarding these
new substances. Any substances that can cause harm to the body or impair
a person's judgment are considered poisons to be avoided.
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LOTTERY
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Gambling is prohibited in the text of the Qur'an; there is no question about
that. Gambling is described as taking money from person(s) to give it to
others by virtue of a vain chance based on a strike of luck. The Shari`ah
does not approve of such gains and losses, or such redistribution of income
or money between people because there is no valid basis for it. Valid bases
for acquiring a property are sale of goods and services (including labor) and
growth of one' own property, such as reproduction of livestock.
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10. FORBIDDEN BUSINESS
1. Riba
2. Extortion and taken his property by way of
vanity
3. Cheat and swear to popularize goods
4. Bribe
5. Monopolize goods (ihtikar)
6. Prohibition to buy stolen merchandise, grazing
or confiscated without rights.
7. Etc..
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11. ILLEGAL SALES & PURCHASE
1. Sale and purchase of faecal material.
2. The sale that cause the separation between mothers and
young children.
3. The sale during prayers on Friday.
4. Sell ​wine or liquor of dates to the processor if the
assured purchase material to be alcohol or other illegal
substances.
5. Monopoly or speculation (al ihtikar) on essential items.
6. Involve sales or earnest deposit will not be refunded if
the sale does not occur ( al’arabun).
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12. CONCLUSION
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Nowadays, business in Islamic ethic had become one of the
topic to be discusses in business communities. The Islamic
ethical codes, on the contrary, are humane rather than
utilitarian or relative. They are good for all times and
absolute. Ethical and moral codes in Islam are part of the
overall Islamic faith and observing them will not only lead to
a happy state of affairs in this world but also holds the
promise of manifold returns in the Hereafter. Islamic ethical
and moral codes thus create a sense of responsibility and
accountability in the minds of the believers, be they buyers or
sellers.
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Through business Islamic ethic, we can see that the ethical is
multidimensional and comprehensive. So there is a need for
people to study and get implement this ethic in our present
business situation.
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13. Q&A
1. What is ethics?
2. Please list out three principles of Islamic
ethics.
3. State out four types of illegal sales and
purchase.
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