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Abstract
The objectives of this paper is to review some researches on marketing concept in
Islamic perspective. The expected of this review is to provide benefits for related
researches in the future. This study uses some review papers, empirical studies and
books related to marketing concept in Islamic perspective. The analysis allows
identifying interesting points for future research on the topic of marketing concept
in Islamic perspective. This paper provides a better understanding on how Islamic
perspective on marketing concept. This paper only reviewed concerned articles
from Science Direct, Emerald Insight and books. The results of the review showed
that the limited studies about the marketing concept in Islamic perspective (Islamic
marketing concept). Result of this study is believed to give worth understanding
about actual situation in this field of research. It proposed some notions that will
stimulate more intensive researches in this field in the future.
Keywords: Islamic Perspective, Literature Review, Marketing Concept, Marketing
Mix
1. INTRODUCTION
Islam Religion sees business activities as an important resource for someone
to make a living during this process in accordance with Islamic teachings related
to the proper ways to do business. Allah ordained Prophet Muhammad to be a
successful businessman before his prophetic life (Antonio, 2007). Because Islam
is the way of life, a code of conduct marketing should be guided by the Quran and
Hadith, which are the two main sources of reference for Muslims in order to be
succeed in life and hereafter.
Islamic perspective guarantees the important things in the field of global
business for several reasons. First, Islam provides a framework that forms the moral
and ethical behavior of the growing number of Muslim consumers worldwide.
Second, an increasing number of Muslim population represent some of the most
affluent consumers in the world. Third, there has been an increase in the level of
foreign investment in Muslim countries in recent years. Fourth, there is a growing
momentum towards the establishment of Muslim trading zone. Finally, the current
political situation indicates that there seems to be the definite impetus towards
greater Islamization of the countries that are predominantly Muslim in the form
back to the application of Islamic law (Sharia) to all aspects of life (Saeed et al,
2001).
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The Marketing Concept in Islamic Perspective: A Literature Review
2. METHODOLOGY
Literature Search Methods
The main literature conducted in Science Direct and Emerald Insight and
other sources. Keywords used in the literature search are "marketing concept", or
"Islamic perspective". Search by coating the next step is to check the reference lists
of relevant articles were obtained. Then look for articles that are listed in the
reference list of the main articles obtained with the help of search engine
google.com. The literature search of the book was done by online and also
textbooks.
Inclusion and Exclusion Criteria
This study is limited to literature published in ScienceDirect and Emerald
Insight with the full text of articles are accessible available. Some titles of articles
found that appeared as a keyword is the marketing concept and the Islamic
perspective. Then after the study abstract and its contents, only a few articles that
met the inclusion criteria (relevant topics of study literature). Therefore, the article
is deemed not relevant were excluded from further review.
The Analysis Method
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The Marketing Concept in Islamic Perspective: A Literature Review
This article is a review of the literature and not any empirical studies by
examining primary sources related to the topics covered to extract and analyze the
concept of marketing in the perspective of Islam. Therefore, the method used in
this paper is an explorative descriptive method. Secondary data has been collected
from relevant sources such diverse journals, textbooks, and others described in the
narrative argumentative based on the theoretical study. There is no statistical or
mathematical modeling methods are used to support the discussion of this article.
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The Marketing Concept in Islamic Perspective: A Literature Review
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The Marketing Concept in Islamic Perspective: A Literature Review
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The Marketing Concept in Islamic Perspective: A Literature Review
Alom & Haque (2011) explains that Islam marketing can be defined as:
Processes and strategies (Hikmah) fulfillment through products and services that
are Halal (Tayyibat) by mutual consent and welfare (Falah) of both parties that
the buyer and seller for the purpose of achieving the material and spiritual welfare
in this world and hereafter.
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The Marketing Concept in Islamic Perspective: A Literature Review
i. Ethical advertising
No action is misleading, deceptive or unfair on advertising (QS 3:77).
The Basic Philosophy of Islamic Marketing
The highest and most important concept in Islam is Tawheed or Oneness, the
underlying message that must be understood from the concept of Tawheed is that,
from an Islamic perspective, the dichotomy between science and religion is clearly
not possible. (Alhabshi, 1987; Haneef, 1997). This is the most important concept
that should be known by Muslims for the safety of life in this world and hereafter.
Rice (2001) stated that the concept of Tawheed is the most important ingredient in
the trade. Furthermore, according to Abu Sulayman (1998), the concept of
Tawheed is vertical and horizontal relationships. A vertical relationship describes
the relationship between man and his creator, while horizontal linkages depict
human relationships under the law of God. The principle of Tawheed also requires
Muslims believe that Allah is the sole architect of the universe and human beings
because it is God's representative to manage this world and all its contents with
how (Abu Sulayman, 1998; Badawi, 2002). In terms of marketing, Arham (2010)
argues that justice can be applied to smooth the flow of goods, among others. By
smoothing the flow of goods, the company will enable customers to meet their
needs. The smooth flow of goods could prevent hoarding practices condemned by
Islam. By eliminating the practice of hoarding, one has managed to show a person's
actions of fraternity (both inter-human relations) to other people and also set a
justice to the community. Because all people are basically the same, all customers
have equal rights to obtain the desired product in order to meet their needs.
Hoarding will raise prices and create injustice for those who cannot afford to buy
a certain product they need.
Islamic Marketing Characteristics
In general, there are four characteristics that surround the marketing concept
in Islam, the religious, ethical, realistic, and humanistic (Sula and Kartajaya, 2006).
If one gives the four characteristics of the mind, one will get a good relationship
between the five pillars of Islam and the implementation of it.
a. Religious, Islam marketers must fully believe that Islamic law is the supreme
law should be used as guidelines only, perfect, and the source for all the
goodness
b. Ethical, spiritual increase in the Islamic marketing will establish Islamic ethics
in business transactions. One of the characteristics of Islamic marketers is full
of ethical considerations
c. Realistically, Islamic marketers should not be so "rigid" in Islamic marketing
practice, as long as it does not violate Islamic law. The content is more
important than appearance. However, it should be noted that being realistic does
not mean that in the case of "emergency", the Muslim marketer can do
something that violates the principles of Islamic law.
d. Humanistic, Islam as other religions, came in order to teach people the values
that can distinguish people from each other creatures that inhabit this world.
Therefore, one should be able to keep out of a desire that such inhuman greed.
Islamic Marketing Objectives
The Islamic marketing objectives cannot be separated from the purpose of
sharia. Based on the Islamic marketing philosophy, it is clear that the man was a
messenger of God in this world. God entrusts the human being to control and
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The Marketing Concept in Islamic Perspective: A Literature Review
manage the world according to His will (Khan, 1991; Haneef, 1997; Hassan and
Lewis, 2007). This view is rather different from ours in conventional economics,
as quoted by Haneef (1997: 45) as follows:
"This is of course, completely different from the" economic man, "that is modern is
not obliged to consider the form of submission to Allah".
Therefore, the belief that God is giving should be used in all aspects of life,
including marketing. Although in reality, different ways may be taken to take
advantage of the belief that as long as they meet certain principles. The principles,
according to Ahmad (1989: 26), are as follows:
"Agree with the principles of Islamic law or Sharia. Achieve economic and social
goals of the Islamic civilization".
Arham (2010) argues that the goal of marketing is to bring Islam to the new
world of marketing theory, in which the modern marketing theory associated with
the teachings of Islam. Islam marketing should be able to take part in the realization
of social justice.
Marketing Mix in The Islamic Perspective
In Islam any commercial activity governed by two principles. First,
compliance with the order of Allah, second, empathy and compassion for God's
creation which implies refraining from doing harm to others and thus prevent the
spread of unethical practices (Niazi, 1996).
The marketing mix may vary according to consumer perception, consumer
behavior, characteristics, culture, religion, politics, and habits. A sound ethical
marketing-mix which states that freedom of decision making of customers should
be protected from all the elements of coercion (Abul Hassan et al, 2008).
Saeed et al (2001), analyzing the Islamic perspective of the marketing mix to
see the general aspects of the marketing mix are product, price, promotion, place
and people.
According to Abuznaid (2012) states there is nine marketing mix from the
viewpoint of Islam which are product, price, place, promotion, process, people,
physical evidence, promise, and patience.
Product
The production process in Islam is a part of the worship of Allah (Al-Faruqi,
1992). This is very different compared to Western thought. In Islam, the production
decision-making process is guided by the principles of legality, purity, existence,
delivery, and the right determination (Al-Misri, 1991). These principles indicate
that the product must:
1. Halal does not cause problems with thinking in any form, especially in a society
(immoral).
2. The product must be wholly owned by owner
3. The products must be submitted after the sale and the product is not valid if it
cannot be submitted as an example of selling fish in the river.
4. Goods are bought and sold must include the quantity and quality (Al-Ukhuwa,
1983 as cited in Abuznaid, 2012).
The main purpose of the production process is to provide, improve and meet
basic human needs. Miller and Deiss (1966) showed that the main force behind
ethical decision making suboptimal production is cost leadership strategy. On the
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The Marketing Concept in Islamic Perspective: A Literature Review
contrary, Islam encourages the perspective of welfare and social approach rather
than a decision based on the maximization of profit (Miller and Deiss, 1996).
Product quality is very important in the ethics of Islam (QS 2: 172, 7).
Price
Price is the most flexible element of the marketing mix. It should be clear that
in Islam takes into account the attention of shoppers is not less important than
considering the attention to the seller. In Islam God is a price maker. Prophet
Muhammad said in a hadith "Allah is the creator of the price; God gives wealth
and hold it, and I hope to meet God if there is no complaint that I have been unfair
to money or blood". However, when retailers and traders set the price of unfair, is
important in Islam that the rulers (government) intervene for the sake of the
population and to prohibit monopolies. Today, a lot of the fact that many businesses
are purely profit-oriented, in the view of the Islamic government must intervene to
protect the interests of citizens, taking into account that some customers are not
aware of the price and can be fooled by marketers; Therefore, intervention is
required. A role for the welfare of the community is to ensure that prices remain
fair and just by limiting any ethical loopholes in the regulation of prices. All
deviations are not ethical in prices is tantamount to injustice and sin. Pricing policy
must be free from predatory pricing. Changes in prices should be consistent with
changes in the quantity or quality of the product. Islam forbids false propaganda or
publicity relating to price, demand, and supply. However, Islam does not forbid
price control and manipulation to meet market needs. However, Islam prohibits
extortion or making high profits at the expense of consumers (Koku, 2011) .To
achieve positive results, there should be no hoarding, no price manipulation is
justified and there are no restrictions on trade (Niazi, 1996).
In addition, “selling on credit should be documented and should be seen by
others. Taking goods or goods of the buyer as security for payment recommended
"(QS 2: 282). Therefore, the pricing policy in Islam should:
1. Do not cheat customers by giving the false impression that they are getting a
bargain price (Shaw, 1996).
2. Prohibit get something too easily without hard work (Maisir), or receive
benefits without working for it (Shaw, 1996).
3. Do not change the price without changing the quantity or quality of the product.
4. Not easy to deceive customers to benefit easily
5. There should be no discrimination between bidders and non-bidders to sell the
same merchandise for different prices.
6. Prohibit false propaganda on the part of international marketers on demand
supply position through the media.
7. Having control and manipulation of prices to meet the needs of this market as
a result of the natural scarcity of supply is not prohibited.
8. Prohibit accumulation of any product to influence prices.
Place (distribution channels)
In Islam, marketing decisions pertaining to distribution is important.
Decisions regarding the distribution of the product or service must consider that
maximizing profits are not necessarily the most appropriate for the welfare of the
community. According to the principles of Islam, distribution channels should not
create burdens for the end consumer, in terms of higher prices and delays. Ethical
irregularities in the distribution channel as causing unnecessary delays in the
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The Marketing Concept in Islamic Perspective: A Literature Review
delivery of customer entice them to come back repeatedly and thus causing them
unnecessary discomfort and are not allowed. Islam does not prohibit the institutions
and representation of the channel as a go-between to facilitate the movement and
acquisition functions. Unethical practices in the distribution of packaging could be
weaker without adequate protection for the product; packaging inappropriate, and
dangerous and toxic products have to be transported very carefully without any
negligence. Harming people in the street, when transporting dangerous goods is
equivalent to unfair marketing practices. Distributors must not use coercion; they
also do not have to create a burden for the end customer in terms of higher prices
and a delay (Al-Ukhuwa, 1938 in Abuznaid, 2012).. Facilitation of the delivery of
goods and the acquisition of products by agencies are not prohibited in Islam.
Finally, it should be emphasized that the ultimate goal of distribution in Islam is to
create value and to provide the ethical satisfaction of products and services. Within
the framework of Islamic ethics, however, the main purpose of distribution
channels should create value and raised the standard of living by providing the
ethical satisfaction of products and services (Saeed et al, 2001).
Promotion
Marketing communications about goods and services are not to deliberately
deceive or mislead. In Islam, the seller and the buyer are responsible to God. Both
have, to be honest, and fair in their marketing activities. In the promotion of
products, there should be no room behavior sale to cover or hide defects in the
product. All forms of false statements, praise the product in excess and connected
to the quality they have, the charges baseless and false testimony is condemned
(QS 33:58; QS58: 17-19). It is not allowed to praise the product or service
redundant. Swear in the name of God in order to promote their products and
persuade shoppers to buy goods not only allowed but also would revoke the
blessing of God.
Give the wrong impression whatsoever to promote products is prohibited. In
addition, all the things that have an element of coercion and are considered the
unethical way of advertising is prohibited. False and misleading advertising and
promotions were deceptive and manipulative should be avoided. The correct
information that reveals the exact specifications e.g. quantity and quality should be
disclosed. Stimulates lust, deceit, betrayal, theft or injustice is not allowed.
Disclosure of all hidden flaws in a product and service is a must. Islam condemns
all promotional manipulative behavior. Prophet Muhammad said, "The person who
cheats is not one of our groups". In an effort to persuade people to buy their
products, advertisers are prone to exploit ambiguity, concealing the fact by
eliminating information that does not appeal to their products, exaggerating to
make a claim that is not supported by evidence, and using her psychological entice
customers with exciting requirements their emotional and unreasonable.
Furthermore, Islamic ethics prohibits female stereotypes in advertising, the use of
excessive fantasies, use of language and misconduct, and the use of women as
objects to lure and attract customers (Erffmeyer et al, 1993; Beekun, 1981;
Razzouk, 1993).
People
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The Marketing Concept in Islamic Perspective: A Literature Review
Employees are an integral part of the service process and play an important
role in the marketing process. Employees have to be patient, honest, fair, and
accountable. Islam emphasizes independent appraisal on the part of the customer;
rational thinking when making decisions related to marketing is a prerequisite in
Islamic law. It is the responsibility of the marketer to not use any form of coercion
(Ikrah) by forcing someone to do something without his consent, and marketers
should have the intellectual integrity and consumer awareness to ensure that
consumers hard earned money and no waste (Abul Hassan, Chachi and Abdul
Latiff, 2008).
In Islam, a marketer must be polite, gentle, honest, smiling. Marketers must
be able to think rationally and care about the feelings and attitudes of customers.
Marketers also need to have a good appearance. Women need to wear the hijab and
to distance themselves from the actions excessive. Marketers’ women should not
wear tight clothing that can be seductive. The female staff is required to dress in
clothing appropriate to the Muslim culture. Islam also ordered merchants to cease
trading on Friday, especially on the eve of Friday prayers to finish Friday prayers.
The Quran states: "O you who believe, if called upon to perform the Friday prayers,
then you made haste remember Allah and leave your trading, which is better for
you if only you know” (QS 62: 9).
Any unethical marketing practices do injustice, which, by definition, negates
the concept of brotherhood and common humanity that make up the core vision of
Islam (Saeed Ahmad and Mukhtar, 2001). Within the framework of Islam,
marketers should show a sense of responsibility in four things: responsibility
towards God, responsibility to society, the welfare of the marketer itself and
environmental responsibility (Saeed et al, 2001). Violation of any of the above
constitutes a violation of Islamic principles of individual marketers.
Process
The process is an element of the marketing mix and other elements known as
the development of the marketing mix. The elements of the process including the
procedures, mechanisms and flow of activities in which the services are provided.
The process also means how the product will reach the end user. In fact, this process
is critical of the marketing mix for customer satisfaction as waiting times, the
information provided to customers, the efficiency in providing services, and the
interaction of staff in the proper way, all this is important to maintain customer
satisfaction. Customers are not interested to know in detail how the business is run
by the seller. The important thing for the customer is a working system. In Islam,
there are many Surahs in the Qur'an that describes the trade as a noble act and the
desired activity. The main concern is to regulate the market to eliminate fraudulent
transactions and exploitation of monopoly power and not remove the trade market
(Uddin, 2003).
Physical evidence
Physical evidence is an element of implicit meaning the ability and the
environment in which the service is delivered. Physical evidence both tangible
goods and intangible experience of existing customers and the ability of the
business to deliver customer satisfaction to potential customers can assist in the
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The Marketing Concept in Islamic Perspective: A Literature Review
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The Marketing Concept in Islamic Perspective: A Literature Review
Patience
Patience is another element of the Islamic marketing mix. This element is very
important in the service industry. Islam teaches people to be patient in serving
customers. Patience is the key characteristic of good communication. Because of
the importance of patience, Allah mentions in particular verse about patience in the
Qur'an. Allah has commanded us to be patient Quran states ".... Allah loves those
who are patient" (QS 3: 146), "..... and be patient. Allah is with those who patiently
persevere" (QS 8: 46)," Be patient, there...not patience, but with the help of God ...
" (QS 16: 127), Allah is indeed rewarded believers to be patient, Quran states: "the
properties are good it was not granted, but to those who are patient and do not
confer but to those who have the great fortune" (QS 41: 35).
Table 1 Marketing Mix in Islamic Marketing
No Element Islamic ethics
1 Product o Compliance with Sharia
o Do not use God's name in the brands and labels
o Halal (Holy and lawful)
o Accurate Labeling
o here are no weak packaging
o Do no harm to customer
o No thought is dull
o No products obsolete
o Value Resistance
o The environmental impact
2 Price o Fear of Allah (Allah is a price setter)
o Fair and There should be no cheating
o Approach public welfare
o Maximizing profits simply not a priority.
o No price is justified
o There is no price manipulation
o No predatory prices
o There are no feed prices
3 Place o Do not harm others streets
o No delay unnecessary
o There is no compulsion
o The distribution channel is not encumbering customers
o Closure during Friday prayers
o Avoid suspicious location
4 Promotion o Complying Sharia
o Women should not be used to attract or lure customers
o No use suggestive language and behavior
o There is no concealment of facts and information (Disclosure
errors and defects)
o No promotion of manipulative behavior
o No sexual appeal
o There is no oath in the name of God
o Attribute not excessive
o No ad was misleading
o There is no fraud
o No obscene ads
5 People o Complying with Islamic law (Shari'a)
o Polite, friendly
o Offers smile, Honest
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The Marketing Concept in Islamic Perspective: A Literature Review
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The Marketing Concept in Islamic Perspective: A Literature Review
marketing and conventional marketing, for more details can be seen in the
following table:
Table 2 The differences between Islamic marketing and conventional marketing
No Aspect Islamic Marketing Conventional Marketing
1 The scope of Broader Maximizes Narrow and does not include
the definition the value of the the total well-being of
welfare of individuals, communities and
stakeholders and the the country as a whole
general public in
accordance with the
Quran and Hadith.
2 The concept Ethics and Islamic Non-value and not based on
and basic values in its the deity in its activities
philosophy activities
3 Marketers Tied to Islamic Adaptive, situational and
ethics ethical conditional
4 The approach Business partners is Target sales
to consumer aligned
5 The Business partners An opponent to be defeated
perspective and not an opponent
of to be defeated
competitors
6 Marketing Not only material Advantage through customer
objectives gains alone but also satisfaction
spiritual gain
4. CONCUSION
From the above discussion, it can be said that the Islamic perspective to
marketing, it can be used as a marketing tool and construct new knowledge called
"Islamic marketing" as another way to understand the science of marketing. Islamic
approach to the business is regulated by two sources, namely the Qur'an and the
Hadith of the Prophet shaped guide how Islam entire life. The practice of Islam is
based on the divinity and faith, and does not recognize the separation between the
earthly dimension and hereafter; it is different with western contemporary
marketing practices based on profit maximization. According to the Islamic
perspective, activities are based on the goal of satisfying the material alone will
inhibit rational thinking people and will make them into slaves of a marketing
company. Islam respects freedom and offers free mankind from all shackles of
slavery, including from international marketers. As for the fundamental differences
between Islam marketing with conventional marketing is situated on the ethics and
values of Islam in any marketing activities based on the Qur’an and the Hadith.
The purpose of this article is only reviewing the literature theory of marketing
concept in the Islamic perspective; this article describes several perspectives from
previous literature and not to formulate a comprehensive new model of marketing
Islam. Although the field of marketing Islam has laid down some clear theory,
further research is still needed to understand Islam in a comprehensive marketing.
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The Marketing Concept in Islamic Perspective: A Literature Review
Some of the future research have been identified and the chance to do such research
literature review about the marketing practice in Islamic law, Islamic rent and sale,
the Islamic concept of Halal market and branding Islam and other topics. In
addition, empirical research to find out the perceptions and attitudes of non-Muslim
customers in choosing products and services of Islamic Halal, perceptions and
attitudes towards marketers Muslim women in an Islamic society. Future research
should not be limited to Muslim consumers’ comparison with non-Muslims in
Muslim countries, but more widely to explore the Muslim minority which describes
the role of Islam and the adaptation of consumption culture brand strategy for
different Muslim consumers.
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