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I S L A M I C W AY O F
MARKETING
AND
CONSUMER DEALING

NAME: MUHAMMAD SAAD


BATCH: 2013-2014
DEPARTMENT: ELECTRICAL ENGINEERING
ROLL NO: EE-154

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Preface
The purpose of this paper is to conceptually demonstrate the Islamic Shariah
compliance market. Out of the seven billion population of the world, Muslims
constitute approximately 23 percent. Many international and local markets are
looking forward to target the Islamic states in terms of economy. However, Islam
has set a basic set of rules and principles regarding business and marketing. The
success of companies is reliant on the tactics that are used by the marketing
department to sell their products. If marketers do not understand the mind set of
Muslim consumers then international investors may not only risk pushing away a
large proportion of the Muslim market but also find themselves in direct conflict
with them.
In Islam submissions to the will of Allah is not just a matter of worshipping Him,
but obeying His orders, refraining from things that are forbidden by ALLAH
(SWT); described in the Quran and Sunnah. Marketers must realize that the
Muslim market exists and if they want to target them as consumers they must
differentiate their products accordingly, and if not they would lose their positive
image in the eyes of Muslim consumers.
The prominence of the study is to elucidate selling, marketing mix and
differentiation in the light of Islamic jurisprudence and to explore Shariah
compliance in conventional marketing. Selected studies have endeavored to fill in
the gap between seller and buyer by recognizing the major features of Islamic
marketing and evaluating the borders and possible role of marketers as perceived
by Shariah.
It has been demonstrated in the paper that Islamic teaching of marketing could be
used in marketing tactics. Islamic teachings are civilized. They create wisdom of
responsibility and accountability in the mind of believers, be they buyers or sellers.

Table of Contents
INTRODUCTION:......................................................................................................................................4

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BUISNESS ETHICS AND ISLAM:[1].........................................................................................................4


Freedom of Enterprise:............................................................................................................................5
ISLAMIC TENETS CONCERNING MARKETING:................................................................................6
Keenness to Earn Legitimate (Halal) Earnings:......................................................................................6
Riba (Interest):.........................................................................................................................................7
Trade through Mutual Consent:...............................................................................................................8
Truthfulness in Marketing:......................................................................................................................8
Trustworthiness in Marketing:.................................................................................................................9
Generosity and Leniency in Marketing:...................................................................................................9
Honouring and fulfilling Business Obligations:.....................................................................................10
PROHIBITED MATTERS IN MARKETING:..........................................................................................10
Dealing in Prohibited (Haram) Items:...................................................................................................11
Sale of Al-Gharar (Uncertainty, Risks, Speculation):............................................................................11
Arbitrarily Fixing the Prices:.................................................................................................................12
Hoarding of Foodstuff:..........................................................................................................................12
Exploitation of ones Ignorance of Market Conditions:.........................................................................13
Al-Najsh (Trickery):...............................................................................................................................13
Cheating and Fraud in Marketing(Al-Ghashsh):....................................................................................14
Swearing:...............................................................................................................................................14
Giving Short Measures:.........................................................................................................................15
Dealing in Stolen Goods:.......................................................................................................................16
Adulteration:..........................................................................................................................................16
ISLAMIC SHARIAH COMPLIANT MARKETING................................................................................16
THE MARKETING MIX: 5PS:[3]............................................................................................................16
QURAN AND HADITH ON MARKETING:...........................................................................................18
Conclusion and Implications:....................................................................................................................20
BIBILOGRAPHY:.....................................................................................................................................22
REFERENCES:.........................................................................................................................................22

INTRODUCTION:
In general, marketing is referred to as the management process through which goods and
services move from concept to the customer.
Islam encourages righteous methods of dealing during any business deal and considers
commerce as a crucial part of human life; Allah SWT predestined. Prophet Muhammad (PBUH)

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as a successful businessman before his prophetic life, who practiced as a truthful and
honest business person. This world is handed over to humans and should be managed in
accordance with Allahs wills. This trust must be utilized in all aspects of human life, including
marketing.
Conscious consumption of Haram things, without regret, holds the risk of spiritual or physical
punishment in Islamic law or in the world hereafter. As such, it is now time for marketers that
want to target the Muslim market to differentiate according to the needs of the Muslim market.
Islamic law is named as Shariah law that is formed by Islamic teachings originating from the
Quran and the Hadith.
The fundamental codes of moral behavior such as truthfulness, trustworthiness, generosity and
leniency, adherence to business commitments and contracts, fair, avoidance of evil practices
(such as fraud, cheating, deceit, hoarding of foodstuff, exploitations, giving short measures etc.)
provide, to a large extent, the general background of Islamic business ethics.
BUISNESS ETHICS AND ISLAM:[1]
What is Ethics?
Ethics may be defined as the set of moral principles that distinguish what is right from what is
wrong. Ethics has a twofold objective: it evaluates human practices by calling upon moral
standards; also it may give prescriptive advice on how to act morally in a given situation.
Business Ethics:
Business Ethics is the branch of ethics that examines ethical rules and principles within a
commercial context; the various moral or ethical problems that can arise in a business setting;
and any special duties or obligations that apply to persons engaged in commerce. It makes
specific judgments about what is right or wrong, which is to say, it makes claims about
what ought to be done or what ought not to be done.
Ethics in Islam:
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 Quran and the
teachings of the Prophet (PBUH). Says the Holy Quran:
You are the best nation that has been raised up for mankind; You enjoin right conduct,
forbid evil and believe in Allah. (3:110)
Islam has its own distinctive value-based ethical system for business dealings. It prescribes
certain specific guidelines for governing business ethics. It (i) enumerates the general ethical
rules of business conduct, (ii) identifies ethically desirable forms of business, and, (iii) specifies
the undesirable modes of transactions.
Freedom of Enterprise:

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Islam gives complete freedom to economic enterprise. He can start, manage and organize any
kind of business enterprise within the limits set by the Islamic Shariah. However, freedom does
not and must not operate without a sense of responsibility. An individual is free to pursue his
economic activities provided he respects the code of conduct prescribed for the profession, which
broadly means choosing things lawful and shunning matters unlawful. The dictates of the
Holy Quran and the teachings of the Prophet (PBUH) serve to set a scale in everybodys mind
to distinguish between the lawful and the unlawful means of earning, and to prohibit or
disapprove of all things that are either morally wrong or socially unacceptable.
Islam, as a matter of principle, prohibits all activities which may cause harm either to the traders
or the consumers in the market. It encourages the prevalence of free market where everyone earns
his sustenance without government intervention. However, it puts certain restraints in order to
eliminate the incidence of injustice and check malpractices and unlawful operations. In all other
respects market in Islam is free from any state intervention. However, if the people fail to take
guidance from the Holy Quran in matters relating to business transactions, an Islamic state will
strive to organize the market transactions on sound Islamic principles. Freedom of enterprise in an
Islamic market will, therefore, be regulated by the (i) dictates of the Holy Quran and the teachings
of the Prophet Muhammad (PBUH) and (ii) the directives of the temporal authority.
During the early centuries of Islam, this function was mainly performed by the institution
of Muhasbah (headed by a Muhtasib or market inspector). The institution of Muhasbah was an
important institution whose functions were broad-based and multifarious, chief among them being
keeping a watch on the harmful practices prevalent in the market and the society and checking the
incidence of in justice and malpractices in the market.

ISLAMIC TENETS CONCERNING MARKETING:


Islam demands a certain type of behaviour from the economic agents the consumers and the
producers. An Islamic market is characterized by certain norms that take care of the interests of
both the buyer and the seller. There are a number of rules of ethical discipline in Islamic
commercial transactions without which business contract would be regarded as lacking
perfection in the light of the code of good manners, decency and ethical excellence. Some of
these tenets are as follows:
Keenness to Earn Legitimate (Halal) Earnings:
Islam places great emphasis on the code of lawful and unlawful in business transactions.
Many Quranic verses disapprove the wrongful taking of the property.
Says the Holy Quran:

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Do not devour one anothers property wrongfully, nor throw it before the judges in order to
devour a portion of others property sinfully and knowingly. (2:188)
Do not devour anothers property wrongfully unless it be by trade based on mutual
consent. (4:29)
The above verses prohibit the believers in no uncertain terms to devour the property of others
by illegal means. The Prophet (PBUH) endorsed the importance of legitimate ways of earning in
the following words:
Asked what form of gain is the best? [the Prophet] said, A mans work with his hands,
and every legitimate sale. (Ahmad, No: 1576)
From the above it is clear that a Muslim trader must be determined to earn only through
legitimate means. He should not only avoid illegitimate means in earning his provisions and
livelihood but also distance himself from matters dubious and doubtful. The Prophet (PBUH) is
also reported to have said:
Leave what makes you doubt for things that do not make you doubt. (Tirmidhi, No: 2442)
A true Muslim businessman should be wary of the doubtful things in order to keep himself
clear in regard to his faith and his honour because one who falls into doubtful matters is sure to
fall into that which is unlawful (Haram). A tradition of the Prophet (PBUH) states:
A time will come upon the people when one will not care as to how he gets his money
whether legally or illegally. (Bukhari, No: 1941)
Riba (Interest):
In the past people used to say that Riba and trade are the same as both give profit and
increase the capital. If trade is permissible then Riba is also permissible. But Allah SWT
denied their claim in the Quran:
Those who eat usury will not stand on the day of (Resurrection) except like the standing of a
person beaten by the devil (Satan).
Trade had been based on mutual consent, cooperation and sharing of profit and loss for
both parties; on the other hand, Riba is certainty of profit for one party, but uncertainty of
results for the second party. Moreover, it is not permissible to market Riba-based
products.
Islam strictly forbids this form of tyrannical dealings and condemns it in severe terms. The
Holy Quran says:

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Allah has permitted trading and forbidden Riba (usury). (2:275)


Devour not Riba doubled and re-doubled. (3:130)
It further states:
O you who believe! fear Allah and give up what remains of your demand for usury if you
are indeed believers. If you do it not, take notice of war from Allah and his Apostle: but if
you turn back you shall have your capital sums; deal not unjustly and you shall not be
dealt with unjustly. (2:278)
The Sunnah is equally emphatic in denouncing Riba. The Prophet (PBUH) is reported to have
said:
May Allah send down His curse on the one who devours Riba and the one who pays it and
on the two witnesses and on the person writing it. (Ahmad, No: 624)
According to the Quranic teachings there is a clear distinction between genuine business profits
and interest; while the former is recommended and desirable, the latter is hated and undesirable.
Trade through Mutual Consent:
Mutual consent between the parties is a necessary condition for the validity of a business
transaction. It, therefore, follows that a sale under coercion is not acceptable in Islam. A sale
transaction is to be regarded as legal only if it is made through the mutual consent of the parties
concerned. Taking advantage of someones plight and charging high price is also a form of
pecuniary exploitation and as such forbidden in Islam. The Holy Quran says:
O you who believe! eat not up your property among yourselves in vanities: but let there be
amongst you traffic and trade by mutual goodwill: nor kill [or destroy] yourselves: for verily
Allah has been to you Most Merciful. (4:29)
Thus two key elements of general theory of contract are endorsed emphatically in these verses:
mutual consent and gainful exchange.The Prophet (PBUH) is reported to have said:
A sale is a sale only if it is made through mutual consent. (Ibn Majah, No: 2176)
Truthfulness in Marketing:
Islam encourages truthfulness in business transactions and raises the status of a truthful merchant
so much so that he will be at par with the holy warriors and martyrs, in the Hereafter. The
Prophet (PBUH) is reported to have said:

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The truthful merchant [is rewarded by being ranked] on the Day of Resurrection with
prophets, veracious souls, martyrs and pious people. (Tirmidhi, No: 1130)

The Prophet (PBUH) has also exhorted the believers to strictly adhere to truthfulness in
business transactions. He says:
The seller and the buyer have the right to keep or return the 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. (Bukhari, No: 1937)
The tradition implies that Allah blesses business dealings if both the buyer and the seller are
true to each other.
Trustworthiness in Marketing:
Trustworthiness is one of the most important principles of ethical discipline in commercial
transactions. Trust is a moral virtue and duty incumbent on a Muslim in the performance of his
affairs. It demands sincerity in work and purity of intention from every believer. A true Muslim
trader will not, therefore, barter his Akhirah (hereafter) for worldly gains. He will avoid fraud,
deception, and other dubious means in selling his merchandise. The sense of mutual trust
demands that the pros and cons of commodity be revealed to the buyer so that he purchases the
commodity in full satisfaction. Says the Holy Quran:
O you believers! Do not betray Allah and the Messenger, nor knowingly, betray your trusts.
(8:27)
Generosity and Leniency in Marketing:
One should be lenient and generous in bargaining. Therefore, whoever demands his debt back
from the debtor should do so in a decent manner. The Prophet (PBUH) invokes Allahs mercy
thus:
May Allahs mercy be on him who is lenient in his buying, selling, and in demanding back
his money [or debts]. (Bukhari, No: 1934)
The Prophets exhortation to Muslims means that a creditor should be easy and generous in
demanding back his money. The debtor, in turn, should also give back the debt to the creditor on
time with due thanks and politeness. The Prophet (PBUH) was the best of all people in repaying
the debts.

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Abu Rafireports that the Prophet (PBUH) took a young camel on loan. When camels came
to him in charity, he asked Abu Rafito give the creditor a young she camel. Abu Rafi
pointed out that there was no young camel except for a fouryear old camel of a very good
quality. The Prophet (PBUH) said: Give him the best one, for the best amongst you is he
who repays the rights of others handsomely. (Muslim, No: 3002)
Honouring and fulfilling Business Obligations:
Islam attaches great importance to the fulfilment of contract and promises. Islamic teachings
require a Muslim trader to keep up his trusts, promises and contracts. The basic principles of
truth, honesty, integrity and trust are involved in all business dealings. Holy Quran emphasizes
the moral obligation to fulfil ones contracts and undertakings. A verse states thus:
O you who believe! Fulfil [your] obligations. (5:1)
A tradition of the Prophet (PBUH) states thus:
The Muslims are bound by their stipulations. (Abu Daud, No: 3120)
Another tradition condemns promise-breaking as the hallmark or trait of a hypocrite:
If he makes a promise, he breaks it, and if he makes a compact, he acts treacherously.
(Bukhari, No: 32)
In order to safeguard the interest of both the buyer and the seller it is desirable, according to the
Islamic teachings, to clearly define all the necessary details concerning the business deal. Each
business contract should clearly specify the quality, the quantity and the price of the commodity
in question. Thus, in a business contract the offer and acceptance should be made between the
parties concerned on a commodity which is with the buyer and, which he is able to deliver. Any
commodity which is non-existent or not deliverable is not allowed to be transacted. A contract
must be explicit with regard to the rights and obligations of the parties concerned so that it does
not lead to disputes and disagreements between them.

PROHIBITED MATTERS IN MARKETING:


So far we have focused on one aspect of the business ethics guidelines prescribed by Islam
for conducting marketing. Another aspect of business ethics is the various forms of unethical
business practices a Muslim businessman must avoid in his business dealings. Some of these
prohibited and undesirable business practices are as follows:

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Dealing in Prohibited (Haram) Items:


Dealing in unlawful items such as carrion (dead meat), pigs and idols is strongly prohibited in
Islam. Dead meat would mean the flesh of any bird or animal dead from natural causes, without
being properly slaughtered in an Islamic way. A Muslim, therefore, will not eat the flesh of such
an animal or bird. Flesh of an electrocuted animal, or of an animal killed by the blow of a blunt
weapon, and of the strangled one is also proscribed in Islam. Also proscribed is the flesh of the
animal that has been killed or slaughtered in ways other than Islamic. It is, therefore, not
permissible for a Muslim to trade in dead meat. Likewise, trading in pork or intoxicants and sale
of idols and statues is not permitted in Islam. A verse of the Holy Quran says:
Forbidden to you [for food] are: dead meat, the blood, the flesh of swine and that on which
name of other than Allah has been mentioned. (5:1)
The Holy Quran also says:
O you who believe! intoxicants and gambling [dedication of] stones and [divination by]
arrows are an abomination of Satans handiwork: so avoid it in order that you may
prosper. (5:90)
The Prophet (PBUH) is also reported to have said;
Allah and His Messenger made illegal the trade of alcoholic liquors, dead animals, pigs
and idols. (Bukhari, No: 2082)
The Prophet (PBUH) also said;
If Allah makes something unlawful, he makes its price also unlawful. (Ahmad, No: 2546)
Sale of Al-Gharar (Uncertainty, Risks, Speculation):
In Islamic terminology, this refers to the sale of a commodity or good which is not present at
hand; or the sale of an article or good, the consequences or outcome of which is not yet known;
or a sale involving risks or hazards where one does not know whether at all the commodity will
later come into existence. Such a sale is strictly prohibited in Islam because the quality, whether
good or bad, is not known to the buyer at the time of the deal and there is every possibility that
the contract may give rise to disputes and disagreements between the concerned parties. The
Prophet (PBUH), therefore, prohibited the sale of what is still in the loins of the male; or sale of
whatever is in the womb of a shecamel; or sale of birds in the air; or the sale of fish in the water,
and any transaction which involves Gharar. (i.e. anything that involves deception). He also
forbade the sale of fruits before they look healthy and also the sale of crops until the grain

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hardens. Nevertheless, such advance sales would be acceptable if the element of Gharar does
not exist and the quality and the quantity of the goods are pretty well known and predictable.
Arbitrarily Fixing the Prices:
Islam grants absolute freedom to traders provided they adhere to the code of lawfulness. It does
not, therefore, encourage the practice of pricefixing and leaves the traders to earn the profits from
each other within the lawful limits. As a matter of principle public authorities are not allowed to fix
the prices of commodities by force. This is because rise and fall in the prices are linked to various
factors other than the greediness of the traders and fixing the prices may endanger both public and
private interests.
It is reported that once the prices shot up during the period of the Prophet (PBUH). The people
said:
O Messenger of Allah! Prices have shot up, so fix them for us. Thereupon the Messenger of
Allah said: Allah is the One Who fixes prices, withholds, gives lavishly, and provides, and I
hope that when I meet Allah, none of you will have any claim on me for an injustice regarding
blood or property. (Tirmidhi, No: 1235)
However, the role of public authorities comes into play if it becomes absolutely essential to do
so, especially in order to prevent exploitation and other unjust practices in the market. Thus, if a
trader adopts unfair means, charges unjust prices and indulges in undercutting with a view to
doing harm to the smaller traders, public authorities have the right to intervene in the market.
They can and should take steps to fix or control the prices so as to eliminate injustice from the
market and allow the trader to earn reasonable profit and the buyer to pay a just and equitable
price.
Hoarding of Foodstuff:
The Arabic word for hoarding is Ihtikar. It means storing foodstuffs or withholding them in
expectation of rise in their prices. Sometimes, a handful of traders operating in the market buy
the entire quantity of an item, rice for example, and store it up with the object of selling it later at
the time of scarcity to draw maximum profit out of it and to dictate the prices. The consumers are
left with no choice but to purchase the article concerned from the one who hoards, as he is the
only one in the market who holds it. Sometimes, a trader hobnobs with the suppliers who will
only sell their merchandise to him. As a result, he holds the entire stock of the essential items that
other traders do not possess. He is, therefore, in a position to dictate his terms in the market and
sell them at an exorbitantly high price to the needy people. This is an unjust practice and a clear
case of exploitation and deservedly condemned by Islam. The Prophet (PBUH) is reported to
have condemned the hoarders when he said:
No one hoards but the traitors (i.e. the sinners). (Abu Daud, No. 2990)
Prophet (PBUH) also said:

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The importer [of an essential commodity] into the town will be fed [by Allah], and the
hoarder will have [Allahs] curse upon him. (Ibn Majah, No: 2144)
Exploitation of ones Ignorance of Market Conditions:
Sometimes it may happen that a buyer arrives in a town with objects of prime and general
necessity for selling them in the market. A local trader may persuade the new-comer to transfer
all of the goods to him so that he will sell them on his behalf in the market. He obtains the
commodities on a price that is lower than market price and then sells them at a high or exorbitant
price. Islam condemns this act of intermediary intervention which involves exploitation of ones
ignorance of market conditions. The practice was prevalent in pre-Islamic society. The Prophet
(PBUH) has prohibited this practice through a number of instructions. A tradition reads:
A town dweller should not sell the goods of a desert dweller. (Bukhari, No: 2006)
Al-Najsh (Trickery):
The term Al-Najsh means an action in which a person offers a high price for something, without
intending to buy it, but just to cheat or defraud another person who really means to buy it. The
person practising it may collaborate with the seller to offer high prices in front of the buyers
merely as a means to cheat them. This type of fraudulent transaction is totally prohibited in
Islam.

The Prophet (PBUH) is reported to have said:


Do not harbour envy against one another; do not outbid one another [with a view to raising
the price]; do not bear aversion against one another; do not bear enmity against one another;
one of you should not enter into a transaction when the other has already entered into it; and
be fellow brothers and true servants of Allah. (Muslim, No: 4650)
As is clear from the above, Islam also forbids the practice of sale over sale and purchase over
purchase. This means that it forbids someone to offer a higher price for a commodity after the
deal has been accomplished between the parties. Obviously he is offering a higher price in order
to spoil the agreement reached between the parties. As a result of this offer the buyer may feel
tempted to cancel his contract to sell it at a higher price. It may give rise to disputes and
disagreements between brothers. Hence it is strictly prohibited in Islam.
Cheating and Fraud in Marketing(Al-Ghashsh):
The traders and businessmen generally have a tendency to motivate the customers by adopting
fraudulent business practices. Islam strongly condemns all such practices in business transactions
(Al-Ghashsh). The Messenger of Allah has commanded the believers not to indulge in cheating
and fraudulent practices in business transactions. Sale of dead animal, dubious and vague

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transactions, manipulating the prices, selling the items belonging to a desert dweller by a
townsman Al-Najsh (trickery), false eulogy and concealment of defects are all examples of
cheating and fraud i.e. Al-Gashsh. The Prophet (PBUH) has strongly condemned all such
practices in a number of traditions and the believer to abstain from them.
Sellers are not allowed to conceal anything from their buyers during a transaction (Trim, 2008).
One cannot market defective goods without explaining the defects in terms of clarity, if found
defective. Hakim Ibn Hizam narrated:
The Prophet (SAWW) said that: The one who buys and the one who sells have the option to
cancel or to confirm the deal, as long as they have not parted or until they part, and if they are
honest and described what they sell truthfully, then there will be blessing in their bargain. But
if they are dishonest and concealed the truth then the blessing of their bargain will be wiped
out (Sahih Al-Bukhari No. 951).
The concept behind the above Hadith is that it is proscribed to sell a thing without describing its
defects. A buyer has the full right as destined by Islam to return the commodity in case of any
defect which depreciates the value of the goods. Prophet Muhammad SAWW never concealed
anything from his customers, including any defects that his products contained. Al-Fatih (2009)
Swearing:
The traders often take recourse to swearing to emphasize that their items are of good quality. They
claim qualities in the merchandise, which dont exist. They try to persuade the buyers to purchase
their commodity by invoking Allahs name. Swearing in business for such purposes is forbidden in
Islam, be it false or true. False swearing is an act of sin punishable by hellfire. Swearing by
Almighty Allah is too great a thing to be used as a means to sell a commodity. The desirable thing
in business transaction is that both the buyer and the seller remain straightforward and truthful in
their dealings, so that no one will feel the need to swear by Allah in order to create conviction in
the mind of the other party. The Prophet (PBUH) is reported to have said:
Swearing [by the seller] may persuade the customer to purchase the goods but the deal will
be deprived of Allahs blessing. (Bukhari, No: 1945)
Giving Short Measures:
Another form of deceit is to manipulate weights and measures. It refers to the act of taking full
measures from others and giving them short measures in your turn. Giving short measures was a
common malaise plaguing the pre-Islamic days. The community of the Prophet Shuayb (PBUH)
was known for practising it with impunity. Consequently, they were destroyed for their
persistence in deceit and disbelief in Allah and His Messenger. Allah the Almighty has repeatedly
commanded exactitude in weights and measures. One of the verses says:

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And give full measure when you measure, and weigh with a just balance. That is good and
better in the end. (17:35)
Bias in measuring is a scheme to make the trading system impure and clumsy. The scaling
needs to be as precise as possible. When a trader gives short measures to a customer then the
contract is void. As Allah says in the Quran: Woe unto the defrauders:
Those who when they take the measure from mankind demand it full, but if they measure
unto them or weigh for them, they cause them loss (Al-Mutaffifeen Nos. 1-2-3).
The upper coated verses were revealed at the time when Muhammad SAWW migrated to
Madina; Alama Tabri (R.A) narrated it on the authority of Hazrat Abdullah Bin Abbas R.T.A
(may Allah be pleased with him): When Prophet Hazrat Muhammad SAWW went to Madina
Munawarah, the people of Medina were defrauders in sale, they were used to selling with dual
Measures. Prophet Muhammad SAWW taught them to be pure and true in measuring. Scale must
display 1 Kg if the commodity is 1 Kg. Islamic trading laws give the lesson of goodness more
than justice.
The Holy Quran stressed the importance of fairness in business transactions as:
And, O my people give full measure and weight justly, and defraud not men of their
things, and act not corruptly in the land making mischief. What remains with Allah is
better for you, if you are believer (HUD Nos. 8586).
Dealing in Stolen Goods:
Almighty Allah has declared thievery unlawful and warned of severe punishment such as cutting
the hand of the thief from the wrist joint if the necessary legal conditions for the award of
punishment are met. Even if the thief escapes worldly punishment and gets away with stolen
goods, it is not permissible for a Muslim to knowingly purchase or sell these items. The stolen
items are neither to be bought nor sold by those who know the reality. The Prophet (PBUH) made
the person knowingly buying a stolen commodity a partner to the crime. He said:
The one who knowingly purchases a stolen good, is a partner to the act of sin and the shame.
(Kanz Al-Ammal, No: 9258)
Adulteration:
To make food or drink less pure. While ignoring mutual benefit, one is selling low quality
products at the price of good quality products. Nowadays, this is taken as a tool of profit
maximization, with no care of loss on the part of their brothers, which is why the concept of
brotherhood is navigated in our religion. Prophet Muhammad (SAWW) said:
The one who adulterates is not amongst us (Sahih Al Muslim).
Caliph Umar Ibn al-Khattab wasted the milk of milkmen who added water in it.

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ISLAMIC SHARIAH COMPLIANT MARKETING.


THE MARKETING MIX: 5PS:[3]
Product: The key objective of the production process must be to deliver, promote and gratify
basic human needs including the fact that the product must not be creating flatness of mind,
public aggravation, corruption or contamination. Moreover, Al-Ukhuwa categorized them into
Four kinds as unclean organisms (like pig), commodities which made others unclean by
relationship, contaminated articles with partial destroyed usefulness (e.g., contagious garment),
and products that are useful in their clean form but in contaminated form they are harmful or
their usefulness is entirely shattered (e.g., unhygienic, or contaminated olive oil). For instance,
Prophet Muhammad SAWW had chosen commodities to sell which are needed by all people and
were not rotten.
Price: Prophet Muhammad SAWW sold his products at a price which could be absorbed by the
market. He earned his profit on sales volume using a cost leadership strategy that can be
considered effective since one could enter in all market segments with the same price. It was not
allowed to charge an extraordinary price or to decrease the price with intension such that a
competitor would bear loss. Once Second Caliph Umar Ibn al-Khattab had been passing by Hatib
ibn Abi Balta'ah and found him selling raisins at a much lower price with the objective of putting
his competitors up for loss. Caliph Umar Ibn al-Khattab told him: Either enhance your rate or get
away from our market (Anas, 1989).
Certain activities are proscribed in Islam and might direct towards price escalation, for example
involvement of unnecessary middlemen (that would lead to unduly putting up their profit
margins as is the case in real estate in Pakistan), increases in price without any value addition,
profit addition with no effort, and involvement of hard labor and alteration in quality or quantity
of the product. It was not acceptable to swindle the easy-going customer for illicit gains. In
Islam, the self-operating mechanism of price adjustments and healthy competition (Munafasah)
Was in fact encouraged (Al-Quran 83:26).
Place: On placing, Prophet Muhammad SAW prohibited the act of monopoly. Governing
distribution channels has as an objective to set the price level up, which is condemned by Islamic
teachings. According to Islamic principles, channels are not supposed to create a burden for the
final customer in terms of higher prices and delays. The intent of distribution channels should be
to create value and strengthen the standard of living by providing Islamic satisfactory services.
Physical distribution can be examined as a set of information, people, equipment, and
organization. These principles have been followed by Islamic institutions. It is not allowed to
influence the accessibility of any product with the purpose of exploitation, domination in the
marketing channel or application of unnecessary influence over the re-sellers preference for
handling a product.

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Promotion: Contemporise trends have been directing companies towards huge investment in
advertisements to promote their products. Advertisement is the need of time nowadays, but it
must be done in an appropriate manner without exaggeration, just precise and necessary, in terms
of quality and contents. Islam proscribed over promising and/or utilisation of emotional sex
appeal, romantic language, partially covered young model girls in advertising campaigns to
promote a product; this is strictly prohibited within the Islamic ethical framework. Prophet
Mohammad (PBUH) said:
I have been sent only for the purpose of perfecting good morals. When asked Which Muslim
has the perfect faith? The Prophet (PBUH) answered: He who has the best moral character.
It is stated in the Quran:
Let their arise of you a group of people inviting to all that is good (Islam) enjoining Al-Maruf
and forbidding Al-Munkar and it is they who are successful (Al-Imran)
People: Islam is in favour of open-minded and self-governing judgment on the part of the
customer. It is prerequisite in Islamic law to think rationally while making any decision in the
global market. Society should not be deprived of honest, free from coercion marketing
information. The customer has the right to get accurate information about the product and is
pinpointing the status given to him by Islam, as well as of the predetermined rights of his wealth
that he spends in purchasing the product of any company.
QURAN AND HADITH ON MARKETING:

Sources on which Marketing is prohibited in Islam:


a)

Bribery (Al-Baqarah: 188).

b)

Usurping others property (Al-Baqarah: 188).

c)

Fraud (Al-Imran: 161).

d)

Stealing and Robbery (Al-Maida: 38).

e)

Income from sources of vulgarity (Al-Noor: 19).

f)

Gambling (Al-Maida: 90).

g) Wine and its business (Al-Maida: 90).


h)

Interest (Al-Baqarah: 275).

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Moral Directives of Islam in Conducting Business: [2]

And measure full when you measure. And weigh with an even balance. This is better and its
end is good. [Al-Bani-Israel: 35].
You resort to oaths as instruments of mutual deceit, so that a person might take greater
advantage than another; although, Allah puts you to the test through this. Surely, on the Day
of Resurrection, He will make clear the truth concerning the matters over which you
differed. [Al-Nahl: 92].
O Believers! Whenever you lend money for a particular period, write and someone among
you must write it justly. And the one who can write must not refuse. [Al-Baqara: 282].
Prophet Muhammad (PBUH) has said that Almighty Allahs mercy descends on one who is
gentle at the time of buying, selling, and requesting payment. [Tirmizi].
Prophet Muhammad (PBUH) said: whosoever sells a defective product without disclosing its
defect to the purchaser, shall earn the permanent anger of Almighty Allah and the angels
continuously curse such a person. [Ibn-e-Maja].
Abu Qatadah related that the Prophet said: If anyone would like Allah to save him from the
hardships of the Day of Resurrection, he should give more time to his debtor who is short of
money, or remit his debt altogether. [Muslim]
Abu Huraira reported that the Prophet (PBUH) said, And what is most likely to send people
to Paradise? Being conscious of Allah and good manners. [Bukhari, Tirmidhi & Ahmed].
Allah will deprive usury of all blessing, but will give increase for deeds of charity [AlBaqara: 276].
The Apostle of Allah (PBUH) cursed the one who pays bribes and the one who takes bribes.
[Abu Dawud, Hadith no 3573].
Trying to buy commodities before they reach market is prohibited because market will decide
the price [Muslim: 1517].
Ibn Abbas (May Allah be pleased with Him) reported Allahs Messenger (PBUH) as saying:
He who buys food grain should not sell it until he has taken possession of it. [Muslim].

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Numan b. Bashir (Allah be pleased with Him) reported: I heard Allahs Messenger (PBUH)
as having said this (and Numan pointed towards his ears with his fingers): What is lawful is
evident and what is unlawful is evident, and in between them are the things doubtful which
many people do not know. So he who guards against doubtful things keeps his religion and
honor blameless, and he who indulges in doubtful things indulges in fact in unlawful things,
just as a shepherd who pastures his animals round a preserve will soon pasture them in it.
Beware, every king has a preserve, and the things Allah has declared unlawful are His
preserves. Beware, in the body there is a piece of flesh; if it is sound, the whole body is sound
and if it is corrupt, the whole body is corrupt. [Bukhari; also in Muslim].
Prophet Muhammad (PBUH) has said that Almighty Allah proclaims: I am a one third
partner of a two man partnership until one of them acts dishonestly to his partner, and, in
such an event, I then leave them. [Abu Daud].
O believers! Stand firmly for justice, giving witness for Allah, may be therein your own loss,
or of your parents or of your relations. Against whom you be a witness, he be a rich or be a
poor, in any case Allah has more power than anyone over them, therefore follow not passion
lest you may be far away from justice; and if you distort or turn your face, then Allah is aware
of your doings. [Al-Nisa: 135]
O believers! Stand-up firmly by the Commandments of Allah, bearing witness with justice
and let not the enmity of any people incite you that you should not do justice. Do justice that is
nearer to piety and fear Allah, undoubtedly, Allah is aware of your doings. [Al-Maida: 8].
Conclusion and Implications:
Each and every society has evolved ethical and moral codes of conduct for business transactions.
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
Islamic ethical framework is repeatedly stressed throughout the Holy Quran, and the teachings
of the Prophet and encompass all spheres of life including business financial dealings and
obligations. The fundamental codes of moral behaviour such as truthfulness, trustworthiness,
generosity and leniency, adherence to business commitments and contracts, fair treatment of
workers, avoidance of evil practices (such as fraud, cheating, deceit, hoarding of foodstuff,
Companies are trying hard to become more competitive than their competitors, but the issue in
Islamic marketing is whether or not they are gaining a competitive edge through a righteous path
and that the practice used is in the favour of society. Islamic marketers must be able to

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incorporate the spirit of Islam in all aspects of marketing activities, from planning to after sale
services.
Islamic practices are based on divinity and faith and it can appear, at times, to be in conflict with
contemporary conventional marketing practices. Islam, above all, respects freedom and offers a
means of freeing human beings from all restraints of enslavement, including that of international
marketers. It has been concluded that Islamic teaching of marketing could be used in marketing
tactics. Islamic teachings are civilized. They create wisdom of responsibility and accountability
in the mind of believers, be they buyers or sellers.
Managers should focus on the business practices that are described by Shariah and introduce
healthy practices to burgeon and capture a majority of the Muslim market, given that Muslim
consumers need great attention and identify important ethical issues in marketing tactics that are
conflicting with the philosophy of Islam.
Customer loyalty always remains a prime concern for business organizations, so managers need
to be attentive of the religious perception of consumers in order to become successful in
marketing their products and achieve public acceptance Exploitations, giving short measures
etc.) provide, to a large extent, the general background of Islamic business ethics.

BIBILOGRAPHY:
Al-Quran, translated and interpreted by Marmaduke Pickthall,
Al-Quran, translated and interpreted by Muhammad Taqi-ud-Din Al-Hilali and Muhammad
Muhsin Khan.

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Al-Quran, translated and interpreted by Professor Shah Farid-ul-Haque


Sahih Al Bukhari, translated by Mr. and Mrs. Zaidan.
Sahih Al Muslim, translated by Abdul Hamid Siddiqui.
Saeed, M. and Baig, A.K. (2013) Islamic Shariah-compliant marketing, Int. J. Social
Entrepreneurship and Innovation, Vol. 2, No. 2, pp.166178.
Trim, B. (2009) Brilliant Entrepreneur Muhammad SAW.
(Business Wisdom of Muhammad SAW: 40 Business Breakthrough of Prophet SAW),
Madania Prima, Bandung.
Al-Ukhuwa, D-D.M.I. (1983) The maalim al-Qurba fi Ahkam al-Hisbah, Levy, R. (Ed.),
Luzak, London.
Anas, M.I. (1989) Al-Muttawa of Imama Malik bin Anas The First Formulation of
Islamic Law.
Abdullah, N.I. (2010) Status and implications of promise (WAd) in contemporary
Islamic banking, Humanomics, Vol. 26, No. 2, pp.8498.
Al-Fatih, E. (2009) Pesan Nabi Tentang Dagang (Prophet Muhammads Messages on
Doing Business), Garis, Bandung.
REFERENCES:

[1]Buisness Ethics by Dr. Sabahuddin Azmi, Ph. D. (Economics), Lecturer, College of Islamic
Banking, World Al-Lootah University (Internet), Dubai.The Prophetic Traditions are taken
from Hadith Encyclopaedia Version 2.1 of Harf Information Technology.

[2] Islamic Economics Project, economics in Quran and Hadith.


https://islamiceconomicsproject.wordpress.com/

[3] https://www.academia.edu/2534819/Islamic_Shariah_Compliant_Marketing, By Aysha


Karamat.