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Islamic perspectives on marketing

Muhammad Arham

Islamic
perspectives
on marketing

Institute for Middle Eastern and Islamic Studies, Durham University,

Durham, UK

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Abstract
Purpose The paper aims to conceptually exhibit modern marketing theory from an Islamic
perspective.
Design/methodology/approach The paper is conceptual and qualitative in nature. It originated
from two mainstream publications. The first belongs to the ones which discuss Islamic economics and
Islamic banking and finance. The second source comes from those which discuss Islamic business
ethics. Both sources are essential in developing the conceptual theory of Islamic marketing.
Findings Religious teachings, at least Islam, could be applied in the realm of modern marketing
theory. Though not all of its elements could be applied in Islamic society, modern marketing theory
will provide some elements which could be utilised in developing Islamic marketing theory.
Research limitations/implications The lack of papers on Islamic marketing makes the depth of
discussion rather limited.
Originality/value Although several papers already exist in discussing Islamic business ethics
with some elements of the marketing mix, it could be argued that this paper is the first of its kind
which specifically discusses the concept of modern marketing from an Islamic perspective.
Keywords Islam, Marketing, Marketing theory
Paper type Conceptual paper

1. Introduction
Islam teaches its followers to engage in a decent way of wealth acquisition, as Allah
SWT states the issue through one of the Quranic verses as follows:
O you who believe! Eat not up your property among yourselves unjustly except it be a trade
amongst you, by mutual consent. And do not kill yourselves (nor kill one another). Surely,
Allah is Most Merciful to you (Al-Quran 4:29).

From the above verse, one could find a strong message concerning trading. Islam guides
its followers to engage in commercial activities and to refrain from the practice of
charging interest/usury. Therefore, commerce is something viewed as essential in Islam,
for as long as the process is parallel with Islamic teaching on doing business. It should be
noted that Islam views commerce as one crucial factor in human life, so crucial that
Allah SWT destined Prophet Muhammad SAW to be a successful businessman before
his prophetic life (Antonio, 2007; Trim, 2009). Since Islam is a way of life, one could
advance a logic that Islam must have written the code of conducts in doing business,
among any other things.
When companies do business, the marketing department plays a role in delivering
products and services which suit the costumers expectation. Though it is not working
alone, that department has a crucial role in determining the success of companies.
In delivering their products and services, it is argued that companies are expected to do
so in a morally acceptable way. Therefore, through this paper, the author would like to
discuss the implementation of the morally acceptable way of marketing from the Islamic
perspective.

Journal of Islamic Marketing

Vol. 1 No. 2, 2010
pp. 149-164
q Emerald Group Publishing Limited
1759-0833
DOI 10.1108/17590831011055888

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In order to comprehend the essence of the discussion, the author will present this
paper in several parts. The first part, already given here, is an opening part concerning
commercial activities. A Quranic verse is given in order to show the reader that Islam
does pay particular attention towards commercial activities. Also, an examination of
several literatures (Antonio, 2007; Trim, 2009) has shown that the life of Prophet
Muhammad SAW as a trader was longer than that as a messenger. Next, discussion
concerning Islam and marketing will be exhibited in the literature review section, along
with several research questions. The Section 3 embarks upon the process towards
discussing the research questions. Finally, concluding remarks will be given at the end
of this paper.
2. Islam and the real sector
Islam is a comprehensive way of life which rules everything, including commercial
activities. Through Al-Quran and Hadith, the two main references for Islamic law,
Islam exhorts its followers to avoid taking usury and instead maintain the quality of
their wealth through just trading. This could be seen from one of the Quranic verses as
follows:
Those who eat Riba (usury) will not stand (on the Day of Resurrection) except like the
standing of a person beaten by Shaitan (Satan) leading him to insanity. That is because they
say: Trading is only like Riba (usury), whereas Allah has permitted trading and forbidden
Riba (usury). So whosoever receives an admonition from his Lord and stops eating Riba
(usury) shall not be punished for the past; his case is for Allah (to judge); but whoever returns
[to Riba (usury)], such are the dwellers of the Fire they will abide therein (Al-Quran 2:275).

There are few points worth considering from the above verse. It could be argued that
Islam does allow the practice of wealth acquisition. Second, freedom in wealth
acquisition is not unlimited. This means that Islam exhorts its followers to acquire
wealth by actively participating in real sectors and not through acquiring easy money
by practicing interest. Allah SWT, through his messengers, had already given an
example of participating in the real sector. On this regard, Prophet Muhammad SAW
said the following:
Narrated Abu Hurairah RA: The Prophet SAW Said, Allah did not send any Prophet
but he shepherded sheep. His Companions asked him. Did you do the same? The Prophet
SAW replied, Yes, I used to shepherd the sheep of the people of Makkah for some Qirat
(Khan, 1997, p. 254).

The word Sheep depicted in the above Hadith symbolizes the real sector. One could
argue that investment in real sector is very important since it attracts the creation of
capital and decreases the amount of unemployed. However, Islam also rules the
condition of participating in the real sector. In this manner can Islamic marketing plays
its role, according to the author.
3. Research questions
Given the argument that Islamic marketing could play its role in modern commercial
activities, the questions that are going to be discussed in this chapter are as follows:
RQ1. What are the philosophical and characteristics of Islamic marketing?
RQ2. Is it ethical to market products or services by exploiting ones religious believe?

RQ3. What constitutes Islamic marketing strategy?

RQ4. What are the challenges ahead for Islamic marketing?
The collection of papers which specifically discuss the elements of Islamic marketing
has not been found so far. However, apart from Al-Quran and Hadeeth, the author noted
that there are two types of papers which share the elements of Islamic marketing
and therefore could contribute to build the body of knowledge on Islamic marketing.
The first type belongs to those which discuss the concept of Islamic economy and
Islamic finance (including Islamic banking) in general. The work of Alhabshi (1987),
Khan (1987), Chapra (1988), Ahmad (1989), Dar and Presley (1999), Hassan and Lewis
(2007), and Saidi (2009) are some examples which belong to this category. The second
type, such as those presented by Rice (2001), Saeed et al. (2001), and Abuznaid (2009),
touch some elements of Islamic marketing although the whole papers are not specifically
entitled to discuss the marketing concept. Those papers in the second type are closer to
the conceptual development of Islamic marketing than those in the first. However, it does
not mean that the exclusion of those belong to the first type could be considered. All of
those papers are necessary in order to build the body of knowledge in Islamic marketing.
Realizing the wide intellectual gap in Islamic marketing publication, this paper will
attempt to unite all ideas, no matter how small, in order to build the body of knowledge
in Islamic marketing. As its first attempt, this paper will commence its discussion
towards the philosophy of Islamic marketing.
4. The need for Islamic marketing
The author argued that people, at least the Muslim, need to live in a way that is
prescribed by Allah and his messenger. In one of the Quranic verses, Allah SWT said
the following:
O you who believe! Enter perfectly in Islam (by obeying all the rules and regulations of the
Islamic religion) and follow not the footsteps of Shaitan (Satan). Verily, He is to you a plain
enemy (Al-Quran 2:208).

The above verse suggests that all ways should be Islamic ways. Therefore, all ways
could be made Islamic. The only challenge is the How element. Realizing that, the
author argued that marketing could be made Islamic as well. Therefore, through this
paper, the author would like to develop Islamic marketing starting from its philosophical
aspect. It could be argued that building philosophical concept is very crucial towards the
development of knowledge. Arguably, the philosophy of knowledge will shape the
elements of Islamic marketing.
4.1 Fundamental philosophy of Islamic marketing
The highest and most important concept in Islam is the Tawhid or oneness[1] (Alhabshi,
1987; Haneef, 1997). This is the most important concept that Muslim must know in order
to live and survive in this world and the hereafter. Rice (2001) stated that the concept
of Tawhid is the most crucial ingredient in commerce. Furthermore, according to
Abusulayman (1998), the concept of Tawhid is both vertical and horizontal. The vertical
relationship pictures the connection between human and its creator, while the
horizontal relationship portrays the inter-human relationship based on Allahs law
(Abusulayman, 1998).

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The Tawhid principle also takes Muslims to believe that Allah SWT is the only
architect of the universe and therefore human being is the representative of Allah to
manage this world and its resources in just way (Abusulayman, 1998; Badawi, 2002).
In terms of marketing, the author argued that justice could be implemented in smoothing
the flow of goods, among others. By smoothing the flow of goods, companies will ease the
customers in meeting their needs. Furthermore, the author argued that smoothing the
flow of goods could prevent the practice of hoarding which is condemned by Islamic
teaching.
By eliminating the practice of hoarding, one has successfully shown ones act of
brotherhood (good inter-human relationship) to other people and also establishes justice
to society. Since everybody is essentially equal, all costumers have equal rights to get the
products that they want in order to satisfy their need. Hoarding will inflate the price and
create injustice to those who cannot afford to but the particular product that they need[2].
So far this paper has discussed the important principle of Islamic marketing.
One should know that the concept needs to be elaborated further. In the authors opinion,
the Tawhidic paradigm serves as a spirit which needs A Character to Fill. Therefore,
this paper needs to discuss some traits that could shape a Character which can be
energized with the spirit of Tawhid. This Shape would be recognized as the
characteristics of Islamic marketing, unique traits infused with the Tawhidic spirit that
could be utilised in the context of modern marketing theory.
4.2 Characteristics of Islamic marketing
In general, there are four characteristics that surround Islamic marketing concept. These
are spiritualistic, ethical, realistic, and humanistic (Sula and Kartajaya, 2006). If one
gives those four characteristics a thought, one will find a good relationship between the
five pillars of Islam and the implementation of it. These concepts will be explored as
follows.
4.2.1 Spiritualistic. This is the umbrella of all teachings in Islamic marketing[3],
according to the author. Spiritualistic means that all business conducts must be coherent
with the teaching of Al-Quran and Sunnah. Moreover, Islamic marketers must fully
believe that Islamic law is the ultimate law that must be used as a guidance which is just,
perfect, and the source for all goodness (Sharing, 2006; Sula and Kartajaya, 2006).
The first pillar of Islam, the shahadah, becomes the heart of this concept. Shahadah is
the ultimate confession of a human to his or her creator. By confessing the shahadah, a
Muslim is abode by any Terms and Condition set by Allah SWT to live in this world.
Any forbidden action will be taken into responsibility in front of the court of Allah SWT.
In terms of Islamic marketing, the total submission to Allah SWT means that all
aspects of marketing must be parallel with the teaching of Islam. Of course, in some
ways, its implementation varies. According to Sula and Kartajaya (2006), Islamic
marketers must be able to include the spirit of Islam in all aspect of marketing activities,
from the planning to after sales service. In other words, any marketing activities must be
done within the ethical boundaries set by Islamic teaching.
4.2.2 Ethical. The spiritual enhancement within Islamic marketing will form Islamic
ethics within the business transaction. Sula and Kartajaya (2006) stated that one of the
characteristics of Islamic marketers is full of ethical consideration. This ethical conduct,
argued the author, must follow the teachings of Al-Quran and Hadeeth. Therefore, it is
necessary to refer this kind of ethics as Islamic Ethics.

In the view of the author, the concept of Islamic ethics can be seen from the practice of
Islamic daily prayers, the second pillar of Islam. Before Muslims pray, they must clean
certain parts of their body before commencing their prayers. In other words, certain
preparations that make Muslims look clean must be done before meeting with their
creators.
In marketing sense, Islamic marketers must make themselves ready. They must be
purified before commencing their marketing activities. The term purified refers to
any attempt of self-cleansing before serving the markets. For instance, companies
must train their marketers so that all marketing activities could be done in ethical
standard set by Islamic teaching.
Last but not least, companies must clearly inform their staffs that they must accept
any results that appear in front of them, for as long as they have worked hard and done
everything they can. Sula and Kartajaya (2006) referred this concept as being Realistic.
4.2.3 Realistic. According to Sula and Kartajaya (2006), syariah marketers should not
be so rigid in practicing Islamic marketing, for as long as it does not violate Islamic
law. The content is more important than the appearance[4]. However, it must be noted
that being realistic does not mean that in the case of emergency, Muslim marketers can
do something which violates the principles of Islamic law[5]. Sula and Kartajaya (2006)
stated that Muslim marketers must be brave to differ themselves from any other
marketers which partially or do not use Islamic principles in conducting business.
In the view of the author, the realistic mentality could be seen in people who perform
fasting in the month of Ramadhan. Fasting, the third pillar of Islam, teaches people to
become realistic. When Muslims perform fasting, they cannot eat when the sun rises
until the sun sets. During that time, all Muslims around the world still do their normal
activity[6] even if they are in the state of hunger and thirst. In the view of the author, the
feeling of hunger and thirst is a symbol of a struggle which will end when the sun sets.
This shows that nothing lasts forever. For every challenge, there lies hope and
prosperity. Being realistic is not just sitting down and losing hope.
In marketing point of view, being realistic means an opportunity for creativity. This is
a state where marketers ability is being tested in order to create breakthrough.
For instance, if companies know that they are selling expensive products, they had
better sold the product in credit rather than asking people to buy it in cash. They could
also offer the least expensive products. This may encourage customers willingness to
buy. The two examples show how the state of being realistic creates hope, which in turn
create an inner power to make a breakthrough. It is important for Islamic marketers to
understand this concept since it will increase the spirit of marketing their products.
Last but not least, companies should view the market humanely. This means that
companies should realize that it is the human being that buy the products, not just a set
of being which could be treated like an object. Therefore, Islamic marketing tries to be
humanistic.
4.2.4 Humanistic. Humanistic here means that Islam, like any other religions, comes
in order teach people the values that could differentiate people from any other creatures
that inhabit this world (Sula and Kartajaya, 2006). As a consequence, one should be able
to distant oneself with inhumane desire such as greed (Sula and Kartajaya, 2006).
According to the author, being humanistic is equal with the fourth and the fifth pillar
of Islam, namely, zakah and hajj[7]. The two pillars, the author argued, are closely related
with being human. Paying zakah will increase social sensitivity towards the poor,

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while going to hajj increase social acceptance towards people from different race and
most importantly skin colours.
Furthermore, the author argued that being humanistic also affects the discipline of
marketing. Modern marketing refers this as Sustainable Marketing (Kotler and
Armstrong, 2010). Basically, it is a concept of marketing which tries to balance between
market demand and environmental preservation (Kotler and Armstrong, 2010). In the
view of the author, it is the trend of todays companies to pay more attention to their
society and more importantly their environment.
So far, this paper has already discussed the philosophy and characteristics of Islamic
marketing. Before expanding the discussion further, the author argued that the
philosophy and characteristics of Islamic marketing need one further test. This test is so
important as to determine whether people, especially Muslim, will accept Islamic
marketing as a new concept or whether this is regarded as Me Too marketing concept
which is fabricated to satisfy the emerging Muslim market.
One needs to question the eligibility of utilising religious concept to sell products and
services and exploiting peoples religious belief to purchase certain products claimed to
be ethical. In order to keep the discussion on track, these questions will be discussed
from the viewpoint of Islamic teachings. However, before embarking upon the journey
towards discussing the questions, it could be argued that one needs to discuss the
objectives of Islamic marketing.
5. Religion as marketing tool
In this part, the author would like to discuss the utilisation of religion as a marketing tool.
The discussion will start from the objectives of Islamic marketing and goes through the
Islamic view of utilising religious teaching to market products and services.
5.1 Objectives of Islamic marketing
It could be argued that the objectives of Islamic marketing cannot be separated from the
objectives of the Sharia. From the above presentation on the philosophy of Islamic
marketing, it is clear that human is Allahs envoy in this world. This world is entrusted
to human to be controlled and managed in accordance to Allahs will (Khan, 1991;
Haneef, 1997; Hassan and Lewis, 2007). This view is rather different from the concept of
human in conventional economics, as cited by Haneef (1997, p. 45) as follows:
This is of course, totally at variance with modern economic man, who is not obliged to
consider any form of submission to a transcendent God.

Therefore, the trust that Allah gives must be utilised in all aspects of life, including
marketing. Although in reality, different ways might be taken to utilise that trust as long
as they meet certain principles. Those principles, according to Ahmad (1989, p. 26),
are follows:
.
Agree with the principles of Islamic law or Shariah.
.
Achieve the economic and social goal of Islamic civilization.
The author argued that it is somewhat challenging to arrive at one single and definitive
objective of Islamic marketing. However, since any objectives need to align with the
principles of Islamic law, one could try to elaborate the objectives of Islamic marketing
as follows:

To bring forward marketing theory to a new realm, whereby modern marketing

theory interrelates with Islamic teaching.
Islamic marketing should be able to take part in realizing social justice.

Given the objectives set above, perhaps one may ask the notion that religious teaching
could be utilised as a marketing tool. This notion is important to consider, as failing to
address the issue will create doubt on whether religious teaching should isolate itself
from any commercial decision making. Section 5.2 would like to highlight this matter.
5.2 Can one use religious teaching as a marketing tool?
It could be said that religious teaching could be utilised as a marketing tool. As far as
Islamic teaching is concerned, there are some evidences that are available in light of this
proposition. First, the Holy Quran has presented many verses which are related in
commercial transaction. These verses, among any, include the prohibition of interest
(Al-Quran 2:275); being straightforward in negotiation (Al-Quran 33:70); and many
more.
Furthermore, one could also witness Islamic concept on commercial transactions
through many sayings of Prophet Muhammad SAW. On selling products transparently,
Prophet Muhammad SAW said the following:
Narrated Hakim bin Hizam: Allahs Messenger said, The seller and the buyer have the right
to keep or return goods as long as they have not parted, or till they part; and if both the parties
spoke the truth and described the defects and qualities (of the goods), then they would be
blessed in their transaction, and if they told lies or hid something, then the blessings of their
transaction would be lost (Khan, 1997, p. 173).

Moreover, as far as legal ruling is concerned, there are no prohibitions towards utilising
religion as a marketing tool nor are there any prohibitions for labelling certain
marketing strategies as Islamic Marketing Strategy, Christian Marketing Strategy,
Hindu Marketing Strategy, and the like. Therefore, the author argued that
incorporating religious teaching into marketing is feasible.
Finally, the author argued that one cannot fully exclude religious teachings from
marketing concept even if marketing strategy development is build from non religious
teachings. One example is the development of relationship marketing or the rise of social
media (such as Facebook). The author argued that such social phenomenon is parallel
with Islamic concept of unity (brotherhood). Therefore, even without scrolling through
any religious text, one might set up a strategy which is parallel with the teaching of
Islam.
Another interesting exposition comes from Harrison (2005, p. 278), who stated that:
[. . .] the bounded ethical principles specifically for marketing are suggested to be:
1. The improvement of human life (morality seen as a defence for the weak, etc.);
2. Recognition of Societys constraints (the law; consumer needs);
3. Working within a market economy, with its emphasis on the reward of risk taking, hard
work and creativity (issues of distributive justice);
4. Recognising the constraints of human capabilities and limitations (e.g. the link between
psychological egoism and theories of motivation).

Looking at Harrisons point of view, one could argue that his propositions are
very close to Islamic teaching. The issues on The improvement of human being and

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Recognition of Societys constraints could be seen from the above Hadeeth concerning
product transparency. The author argued that product transparency could hinder the
consumers from any harm that the products may cause. Islam also teaches the concept of
hard working and distributive justice through Al-Quran (3:1-3) and Al-Quran
(6-141). However, although Islam encourages people to take some risks, Islamic concept
of risks is rather sharing the risks than take the risks yourself.
The last point concerning constraints of human capabilities and limitations is even
more interesting since it is the last point on Harrisons list. This is appealing as Islam
teaches its followers to work hard with maximum capability and then submit everything
to the will of Allah. This is shown by the following verse:
And by the Mercy of Allah, you dealt with them gently. And had you been severe and
harsh-hearted, they would have broken away from about you; so pass over (their faults), and
ask (Allahs) Forgiveness for them; and consult them in the affairs. Then when you have
taken a decision, put your trust in Allah, certainly, Allah loves those who put their trust
(in Him) (Al-Quran 3:159).

The above verse seems to align very well with Harrisons list. The verse already gives
Muslim a direction to make final submission to Allah for all the works they have done.
The concept of submission is arguably useful to eliminate this is my work ego since
the verse clearly hints that Allah is the final decision maker.
So far the author has argued over the credibility of incorporating religious teachings
in marketing. This paper has highlighted some arguments concerning the credibility of
incorporating religious teaching into marketing concept. In the subsequent part, the
author will try to elaborate the conceptual implementation of Islamic marketing. In this
regard, the author would like to focus on conceptual implementation of Islamic teachings
in marketing strategy.
6. How to implement the objectives of Islamic marketing strategy?
The concept of Islamic marketing is useful if it can turn the philosophical concept into
modern marketing concept. In this part, the author would like to present the
implementation of Islamic teachings in marketing mix.
The first step towards applying Islamic marketing is to understand the basic
principles of Islamic marketing. Sula and Kartajaya (2006) stated 17 principles of Islamic
marketing that should be applied when institutions want to be classified as those who
based on Islamic marketing. Those 17 principles are presented by Table I. In general,
those principles are divided into four broad categories.
The first category belongs to the landscape of Islamic business (Sula and Kartajaya,
2006, p. 142). Basically, Sula and Kartajaya (2006, pp. 142-3) made a model which
consists of all elements in business. These are Competitor, Change, Customers, and
Company (Sula and Kartajaya, 2006, pp. 142-3).
The second category belongs to the elements of marketing strategy. Sula and
Kartajaya (2006, p. 143) further divided into three sub categories, namely, Shariah
Marketing Strategy, Shariah Marketing Tactic, and Shariah Marketing Value.
Furthermore, the third category belongs to syariah scorecard. The scorecard can be
used as a tool to balance between the Islamic values that a company promotes and the
actors that support and promote those values (Sula and Kartajaya, 2006, p. 148).
Finally, the fourth category belongs to Sharia enterprise. Sula and Kartajaya
(2006, p. 150) argued that those values have a strong relationship with Inspiration,

Landscapes of Islamic marketing

Elements of strategic business

architectures

Sharia scorecard
Shariah marketing enterprise

1. Information technology allows us to be transparent (change)

2. Be respectful to your competitors (competitor)
3. The emergence of customers global paradox (customers)
4. Develop a spiritual-based organization (company)
5. View market universally (segmentation)
6. Target customers heart and soul (targeting)
7. Build a belief system (positioning)
8. Differ yourself with a good package of content and context
(differentiation)
9. Be honest with your 4Ps (marketing mix)
10. Practice a relationship based selling (selling)
11. Use a spiritual brand character (brand)
12. Services should have the ability to transform (service)
13. Practice a reliable business process (process)
14. Create value to your stakeholders (scorecard)
15. Create a noble cause (inspiration)
16. Develop an ethical corporate culture (culture)
17. Measurement must be clear and transparent (institution)

Source: Adapted from Sula and Kartajaya (2006, pp. 141-2)

Culture, and Institution. Sula and Kartajaya (2006, p. 150) also argued that those
three factors must also obey the principles set by Islamic teaching.
For the purpose sake of marketing strategy, this paper will focus the discussion on
the third category concerning the elements of strategic business architecture[8].
6.1 Fundamental elements of Islamic marketing strategy
The elements of Islamic marketing strategy consist of segmentation, targeting, and
positioning. The following part will discuss how these elements work within Islamic
marketing.
6.1.1 Segmentation. Gunara and Sudibyo (2007) presented an interesting example of
segmentation practiced by Prophet Muhammad SAW. In his time, Prophet Muhammad
SAW conducted his trading business in several important markets in Arabic peninsula
(Trim, 2009), including the one in Bahrain called Mushaqqar (Antonio, 2007, p. 82;
Gunara and Sudibyo, 2007, p. 17). Gunara and Sudibyo (2007) also added that
Prophet Muhammad SAW knew the way of life and the way people eat and drink in
Bahrain.
From the information obtained above, one could argue that Prophet Muhammad
SAW used some of the attributes of geographic, demographic, and psychographic
segmentation in doing his business[9]. Furthermore, one could learn the example of
market segmentation from Prophet Muhammad SAW.
From the way Prophet Muhammad SAW conducted his business, one could learn that
market segmentation could be done through mental process of market identification.
The author used the term Mental Process in order to show how one should come to see
his or her market before conducting segmentation. Prophet Muhammad SAW knew
the situation in Bahrain since he was there and involved in the trading process. In the
process, the author argued that Prophet Muhammad SAW utilised multiple types of
market segmentation. He knew the location of important markets in Arab peninsula

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Table I.
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(geographic segmentation), the type of people he met in the market (demographic

segmentation), and the lifestyle of those he met in the market (lifestyle segmentation).
6.1.2 Targeting. Previously, this paper discussed how Prophet Muhammad SAW
segmented the market. Now, this paper will look at how he targeted his segments.
Modern marketing theory teaches that the various segments available should be
evaluated so that companies know which segments that can be served well (Kotler and
Armstrong, 2010).
How Prophet Muhammad SAW exactly targeted his segments[10] needs to be
researched thoroughly. However, one argument from Gunara and Sudibyo (2007) stated
that Prophet Muhammad SAW could target all of his segments. In modern marketing,
such targeting strategy is called Differentiated Marketing, a segmenting strategy
whereby companies create several different products for several different segments
(Kotler and Armstrong, 2010).
The problem that remains, argued the author, is the quest towards searching for a
good targeting strategy. Perhaps, in this part, the key lies within positioning strategy.
6.1.3 Positioning. According to Kotler and Armstrong (2010), companies must
position their products so that the products could be deemed valuable from the
customers perspective.
When applying this theory back to the era of Prophet Muhammad SAW, one could
find some similarities in product offering. First, the consumers in that era were arguably
as careful as those in present time. Logically, they would buy the best product in
accordance to their financial ability. Second, many sellers offer multiple products to sell.
Modern marketing theory suggests sellers to position their products in the mind of
the consumers. However, an examination from several literatures (Kamaluddin, 2007;
Al-Fatih, 2009; Trim, 2009) suggested that Prophet Muhammad SAW positioned
himself as an honest trader, rather than positioned the products he sold. In other words,
it seems that the sellers are more important that the objects being sold. This does not
mean that Prophet Muhammad SAW did not think about the quality of his products.
Rather, the author argued that Prophet Muhammad SAW did total positioning. He did
not just position the products he sold, but also the way he sold them. With his
personality, Muhammad SAW made a differentiation in his offering.
6.1.4 Shariah marketing tactics. There are three elements discussed in this part.
These are differentiation, marketing mix, and selling.
6.1.4.1 Differentiation. The type of differentiation that Prophet Muhammad SAW
made was unique at his time. The author argued that differentiation of both sellers and
the products they sell must be coherent. This is because a factor called transparency will
take place. One obvious differentiation that Prophet Muhammad SAW did was his
moral obligation to tell every customer the weak point of his products (Al-Fatih, 2009).
He never concealed anything from his customers, including any defects that his products
contained[11]. Al-Fatih (2009) also added that telling the defects of the products sold was
some something of a must for Prophet Muhammad SAW.
Based on the above information, it is argued that one should re-think the philosophy
behind the modern concept of differentiation. Perhaps, one should re-tool the concept
and put more emphasis on differentiation based of sellers merit rather than solely rely
on the imaginary component of the products. Arguably, this is important to be
considered as differentiating products on the basis of the sellers morality might bring
real impact to the quality of the products sold.

6.1.4.2 Designing marketing mix. Prophet Muhammad SAW already taught some
lessons in conducting business, which could be implemented in marketing mix.
On pricing, Prophet Muhammad SAW sold his products with a price which could be
absorbed by the market (Trim, 2008). In other words, he got his profit based on sales
volume (Trim, 2008). Arguably, this is a good strategy to take since he could enter all
market segments with such pricing.
On product, Prophet Muhammad SAW chose to sell commodities which are needed
by all people and are not rotten (Trim, 2009). According to Trim (2009), Prophet
Muhammad SAW chose to go for clothing[12]. According to Al-Fatih (2009), Prophet
Muhammad SAW also prohibited to put the low-quality and the high-quality products
on the same place. Arguably, that was an act of transparency so that customers could
easily differentiate between high and low grade products.
On place (distribution), Prophet Muhammad SAW prohibited the act of monopoly.
Thus, dominating the distribution channel with the intention to set up the price level is
an act condemned by Islamic teaching (Trim, 2009)[13].
On promotion, Islam prohibits the practice of over promising (Trim, 2008). Products
should be communicated within ethical boundaries so that customers do not feel
deceived.
Finally, on phrase, Islam teaches its followers to present an agreement in the
process of buying and selling. This is very important in Islam, as failing to meet the
conditions of buying and selling will cause the process unacceptable (Ayub, 2007)[14].
6.1.4.3 Selling. In selling products, at least there are several lessons that one can learn
from Prophet Muhammad SAW. First, sellers are not allowed to conceal anything to
their buyers during transactions (Trim, 2008). Thus, for as long as sellers meet with the
buyers, either one can opt to quit or to continue negotiation (Trim, 2008). Second, sellers
are prohibited to sell something that does not exist (Trim, 2009). Thus, the goods being
sold must exist. Third, scaling needs to be as accurate as possible (Trim, 2009). If the
products is 1 kilogram, then the scale must show 1 kilogram and not otherwise. Fourth, it
is highly recommended that sellers do not go to other buyers unless negotiation fails
with the first buyer (Trim, 2009). Prophet Muhammad SAW did that in order to satisfy
and to respect all customers (Trim, 2009). Last but not least, Prophet Muhammad SAW
taught to prioritize the first buyer (Trim, 2009).
From the above presentations of Prophets selling techniques, one could learn that
Islam also puts special attention to total customer satisfaction. Arguably, this is the key
towards sustainable business development. The author argued that by having all
customers satisfied, companies could have customers that last.
6.1.5 Shariah marketing value. According to Sula and Kartajaya (2006), all efforts to
sell products and service will doom to fail without any attempts to include product or
service values. In their book, Sula and Kartajaya (2006) includes the concept of value
within brand (value indicator), service (value enhancer), and process (value enabler).
6.1.5.1 Brand, service and process. On value indicator, Sula and Kartajaya (2006)
stated that the appearance of a brand presents the total service that companies offer,
starting from product purchase to after sales service. Kotler and Armstrong (2010)
argued that brand conveys unique message to its audience and consumers try to link
themselves emotionally with it. In the case of Prophet Muhammad SAW, the author
argued that his name was a guarantee for quality, honesty, and integrity[15].

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On value enhancer, Sula and Kartajaya (2006) stated that buyers need to serve their
customers well. It is argued that one indicator of good service is the lack of complain.
Rabi Bin Badr, one of Prophet Muhammad SAWs business partners once said that
Prophet Muhammad SAW was the best partner he had, as he never quarrelled with
Prophet Muhammad SAW and Prophet Muhammad SAW never cheated as well
(Antonio, 2007).
Finally, Sula and Kartajaya (2006) stated that value enabler serve as catalyst
in provision of good service. It is argued that everything needs process (throughput).
How one does the job could differentiate the end result.
Going forward with this discussion, although the author tried to elaborate the concept
of Islamic marketing, it could be argued that challenges to make Islamic marketing
acceptable by the market are still considerable. Some of these these challenges will be
discussed in the subsequent part.
7. Challenges ahead
The development of Islamic marketing, both theoretical and practical, faces challenges
that need to be resolved in order to see future progress. The author would like to
highlight some challenges that need to be taken care of.
7.1 Immersing Islamic teaching within modern law
It is quite surprising to see that modern life also contains elements which represent the
teaching of Islam. In Indonesian context, the Indonesian Government forms a body
which rules out any attempts on market monopoly[16]. Indonesia also possesses other
supervisory body which supervise the quality of the food, both from spiritual
perspective[17] and from hygienic perspective[18] and many others. The key point is to
achieve justice in the society (Wilson, 2006).
Therefore, the author further suggested that Islamic marketing could find its role in
the body of modern law.
7.2 Narrowing intellectual gap
Another challenge that emerges is the ability for Islamic marketing to screen any
relevant theory of conventional marketing in order to position itself uniquely in the body
area of marketing literature. Dar and Presley (1999, p. 1) commented the following
regarding in lack of conventional theory when building Islamic paradigm:
[. . .] Islamic writers have focused upon the Koran and mainly Asian literature without
utilising a wide body of literature in the West which would assist with the development of the
Islamic paradigm.

As happened with the discussion concerning the chemistry between Islamic and ethical
banking (Saidi, 2009), it seems that Islamic marketing would go for the same kind
of issue. Although the author argued that Islamic marketing is not similar with ethical
marketing, more discussion should be gathered in order to confirm or contradict the
issue.
8. Conclusion
From the discussion above, one could argue that religious teaching, at least from Islamic
perspective, could be utilised as a marketing tool. As a consequence, one could build

another body of knowledge called Islamic marketing as another way to look at the
science of marketing. The authors proposition that Islamic teaching could be used as a
marketing tool shows that marketing science could stand very well with religious
matters.
Although this paper has presented the concept of Islamic marketing strategy, the
author proposes that Islamic marketing needs to enrich itself in order to gain acceptance
from scientific community. Therefore, it is the duty of all researchers interested in this
issue to develop this knowledge. May Allah gives guidance in this new endeavour.
Notes
1. One shall dismiss the argument that the concept of oneness should be skipped when
discussing matters like Islamic economics, finance, and management. Such notion is baseless
and depicts the intellectual incompleteness in comprehending the essence of Islamic
teachings. This is, by no means, the most important concept in Islam since it will influence all
sort of things. For instance, the way pricing concept will be developed and the types of
transactions allowed in Islam. Therefore, in terms of Islamic marketing, one should
comprehend this concept before discussing other concepts such as marketing mix, for
example. Finally, the underlying message that must be understood from the concept of
Tawhid is that, from Islamic perspective, dichotomy between knowledge and religion is
obviously impossible.
2. The phrase [. . .] the particular product [. . .] here resembles the products from
particular brand that might capture the majority of the market share. That product, in
the absence of hoarding, could be purchased at normal price. However, in the event of
hoarding, not all people could purchase the product. If the product is available, its quantity
will not be able to meet the customers demand. Furthermore, those who cannot get it are
expected to buy a replacement product whose quality might be inferior or go home with
nothing at hand.
3. In this thesis, the term Islamic Marketing is used rather than Shariah Marketing. There
are reasons for that. First, the author would like to emphasis the Islamicness of Marketing
in this thesis and not any other concept. Second, the term Shariah Marketing is vague since
it can be interpreted differently by many people. For instance, Shariah Marketing may
mean Christian Marketing, Buddhist Marketing, or any other faith-based Marketing.
Therefore, the term Islamic Marketing will bring a clear and exact meaning to any reader
of this thesis.
4. For instance, it does not matter if Islamic banks employ non-muslim employees. For as long
as the employees are competent and want to obey the rules and regulations stipulated in
their contract, then there is no reason for Islamic banks to reject them. This is parallel with
the universality of Islamic law.
5. For instance, Muslim marketers should not make any move which could violate the basic
tenets of Islamic business in the middle of a very important negotiation which has a big
probability to fail.
6. In reality, apart from doing normal activity, Muslim are also encouraged to increase their
religious activity such as reading Al-Quran, etc.
7. Zakah means paying charities under predetermined rate, while hajj means performing
religious ritual in the city of Mecca and Medina, Saudi Arabia.
8. This decision taken is not an attempt to underestimate the importance of other principles of
Islamic marketing within the box. The author would like to emphasise the discussion

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concerning the elements of strategic business architecture since the discussion relates
strongly with the theme of this thesis.
9. It is not clear whether the ability to segment the market was something developed naturally,
taught by someone, or both. Prophet Muhammad SAW began to know entrepreneurship
when he was 12 year old (Antonio, 2007; Trim, 2008, 2009; Kamaluddin, 2007). At that time,
together with his uncle Abdul Muthalib, he began his first trading mission to a place called
Syam (Antonio, 2007; Trim, 2008, 2009; Kamaluddin, 2007). It could be argued that
the journey to Syam marked Prophet Muhammad SAW as Young Entrepreneur. During
his life, Prophet Muhammad SAW had visited many countries in Arab peninsula (Antonio,
2007). Though it is not clear how exactly Prophet Muhammad SAW learned about
segmenting markets, the author argued that this ability might come from both experience
and the teachings of other people, including his uncles. The author used the phrase other
people since Prophet Muhammad SAW might learn segmentation from many people other
than his uncles. This could be the people that he met during his journey or other people from
the Quraisy tribe. The phrase his uncles is used since, according to Trim (2008), Prophet
Muhammad SAW also had an uncle called Abbas Bin Abdul Muthalib who was also a
trader. The author argued that Abbas Bin Abdul Muthalib might also teach young
Muhammad the strategy and tactics of conducting business, including market segmentation.
10. This paper solely discusses everything regarding business concept of Prophet Muhammad
SAW. One could also apply the theory of segmentation, targeting, and positioning of Prophet
Muhammad SAW when promoting Islam. However, such discussion is beyond the scope of
this paper.
11. The practice needs to be researched thoroughly in order to be applicable in modern business.
Owing to the complex nature of distribution channel, one needs to find ways to think about
this issue. For instance, can one view a small, almost unseen scratch as defect? Even if one
does, how does one design a distribution process which can avoid even the smallest scratch
at low cost? Such things are worth to be considered if one desires to have a business with
total transparency.
12. The author argued that the essence of the above statement is that the products should be
commodities which do not get rotten easily. This is because Prophet Muhammad SAW must
have sold many products other than clothing.
13. It is interesting to look at this issue thoroughly. In relation with todays globalization, if one
reflects on Islamic teaching concerning monopoly, perhaps one should re-think on whether to
have Fair Trade as oppose with Free Trade.
14. This element, together with other elements in Islamic marketing strategy, shall be discussed
deeply in other papers.
15. The author argued that companies need to re-think the essence of buying and selling. Are
products and services bought and sold, or do companies and customers actually buy and sell
honesty and integrity? Is zero defect something that customers really want? If yes, why did
people keep coming to Prophet Muhammad SAW, despite the fact that some of his products
contained defects? It is argued that companies should spend some time thinking about this
issue.
16. Supervised by the so-called Monitoring Agency for Business Competition.
17. Supervised by the so-called Indonesian Council of Ulema.
18. Supervised by the so-called National Agency of Drug and Food Control.

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Further reading
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Muhsin Khan, King Fahd Complex for the Printing of the Holy Quran, Madinah.
Corresponding author
Muhammad Arham can be contacted at: [email protected]

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