T8-Halal Branding and Marketing
T8-Halal Branding and Marketing
1. Halal Branding
2. Halal Marketing
2.1 The role of marketing in halal economy
2.2 The Promotional tools
3. Halal Advertisement
4. Critical success factors of marketing halal (4 Ps)
Branding as labelling products and providing meaning,
where brands set to achieve a certain level of awareness and
create a bond with consumers.
-Assumed Halal” brands (that are originated from Islamic countries and
targeted to Muslim consumers, but explicitly not Shariah-compliant)
-True Islamic brand and inbound Islamic brands carry halal logo as
symbol of Shariah-compliant products certified by approved certifying
organizations.
+ Islamic branding as a brand that is based on ethics and
values of Islam.
+ Halal in Arabic means lawful or permissible in Islam and it
applies to all areas of Islamic life and not only confined to
food and drinks.
+ Halal certification certainly helps Muslim consumers to
easily identify the acceptability of a product from among
the alternative products in the market
Halal Marketing
+ Marketers are using various ways to attract and address
customers based on the factors.
+ The factors influencing consumer behavior include social, cultural,
psychological and personal.
+ Islam with consumption and marketing was scarcer in the already
scarce research of the link of religion with consumer behavior and
marketing.
+ Associating Muslims as being a marginal part because of their low
income and the unsuitable market for branded products.
+ Segmentation is based upon developments on the demand side of
the market and represent a rational and more precise adjustment
of product and market offering to consumer or user requirements
+ The classification of a large market with heterogeneous
demand into small segments with homogeneous demand.
+ Market segmentation into three broad groups, namely,
background customer characteristics, customer attitudes and
customer behavior.
+ In specific market include sex, age, geography, subculture,
occupation, income, life cycle, lifestyle, etc.
+ Customer attitudinal attributes try to establish a causal between
customer attributes and marketing behavior.
+ Behavioral characteristics consider the customers’ behavior
toward market offerings from different aspects
+ Segmentation on this basis considers customers’ buying behavior,
consuming behavior, communicating behavior and their reactions
to marketing mix elements.
+ Effective segmentation are measurability, substantiality,
accessibility and actionability.
1. Measurability refers to the productive size and buying power of the
submarket.
2. Accessibility refers to the extent to which a segment can be
approached and served effectively.
3. Substantiality means that the segment should be large and
profitable enough to be feasible for the firm economically
4. Actionability refers to the extent to which a firm can effectively
create and manage programs to attract and serve the segment.
+ Three basic requirements for market segmentation as a part of
marketing strategy:
1. First, there should be a difference between customers from
some aspect to be used for dividing the market.
2. Second, segmentation usually needs segment targets to be
recognized through measurable characteristics for enabling
their potential importance as a market target for estimation
and identification of the segment.
3. Third for the segmentation strategy to be effective, it is also
required that the segments selected can be separated from
the rest of the market, which enables the firm to target them
with a different market offering.
+ The marketers have been successful in accessing the Muslim
consumers, market and designing and managing effective
marketing programs in attracting and serving Muslims.
+ Example: McDonald’s is offering entirely halal product lines
using substitutes of pork in Muslim countries and selected
lines in certain areas in the UK where Muslims are high in
numbers.
+ Positioning is capturing a spot in the minds of consumers.
+ The positioning of halal products can be done by using two
approaches, namely, with respect to product users and
positioning by attributes.
+ Positioning by product users refers to associating products
with one user or class of users.
+ Halal products can be positioned as lawful from the religious
perspective in the minds of Muslim consumers.
+ Non-Muslims also prefer halal products because the halal logo
is perceived to render recognition and assurance.
+ Halal as not merely a religious problem, but a worldwide sign
of assurance of quality and lifestyle choices in the business
and trade world.
+ Halal nature of products for Muslims and hygienic nature for
non-Muslims can also create a form of differentiation in the
minds of consumers
+ Marketing is anchored on 4Ps (the basic model) of Marketing,
Product, Price, Place and Promotion.
+ 3Ps were added to the model but specifically for service
industry as People, Process and Physical evidence.
+ 4P model is considered to be among the basic models of
marketing, the foundation for Islamic marketing can also be
laid by incorporating Islamic.
+ 4Ps are used in contemporary marketing to develop practical
strategies for the business ventures, meeting the demands
and preferences of the customers and make profits in the
competitive industries, the same can be achieved by the use
of same model within Islamic code of conduct.
+ The phase of manufacturing till the point where the product or
service is delivered to the target consumer, every step must be
taken in the light of Islamic Principles and within the boundaries laid
down by Shariah.
+ Making false claims about a product or offering or selling it on the
basis of lies is totally prohibited and unaccepted in Islamic Marketing
model but is a common practice in contemporary marketing.
+ Foundations of Islamic Marketing
1. Correction of intention
2. Keenness to legitimate earnings
3. Profit maximization
4. Honoring and Fulfilling Business Obligations
5. Generosity and leniency in Business transaction
+ Islam clearly defines all the Ps of Marketing mix like Product,
Price and Place etc.
+ Islam defines the characteristics of product which is going to be
sell, and sets some principles for price negotiation.
+ Methods of promotion are clearly explained in Islam, so that
Muslims can do their economic activities, and conduct their
businesses by a legitimate ways.
+ PRODUCT.
1.1 Characteristic of Product in Islamic Marketing.
1. Realistic
2. Humanistic
3. Transparency
1.2 Basic Features Product Strategy in Islamic Marketing
1. Positioning
2. Differentiation
+ PRICE
- Avoiding Price Wars
- Prices may be negotiated for the benefit of an overall market or that of a
consumer, but to indulge in such price wars which create difficulty for
the consumers is against the norms set by Islamic principles of trade
and marketing.
PLACE
- Distribution of products is concerned, creating monopolies has also
been prohibited in Islamic guidelines of business and marketing.
- Islam and Prophet Muhammad SAW strictly prohibit Muslim traders and
marketers from the act of dominating a distribution channel with the
objective of controlling price levels.
+ PROMOTION
1. Lying in Promotions
- Islam has repeatedly pointed out that lying in promotions is
completely prohibited and any deal that is based on false
information or promotion is not acceptable in Islamic
Marketing.
- The target customer must be given independence to make his
or her decision rationally based on the true information
revealed to him or her regarding the quality and capacity of the
products.
Halal Advertisement
+ The media may influence and help people in many ways, from
the need for reference to a simple situation as to let the time
passes.
+ Mass media are pervasive in modern life, in which they are all
encompassing people to get involve in their activities and
‘push’ their intention to participate continuously.
+ Another important aspect that the media should behave and
implement in performing their operation and tasks, that is their
social obligation towards the society
+ Journalists of the printed or electronic media are the tools of a
media organization in playing its role as a mediator between
the senders of a message to the receivers.
+ need to be responsible to what ever they cover and write but
also to ensure of the truthful, accuracy and balance in their
reporting for the target audience.
+ Another important role of the media is to set the agenda.
+ A media would start highlighting on a particular issue and make
the public start thinking about the issue.
+ The media would give coverage and report news on matters
pertaining halal issues
+ Information and messages that a media impart in news and
advertisements for example could enhance public awareness
towards the issue by using repetition.
+ The process of repeating particular news or advertisements would
ensure that the messages penetrate public’s mind.
+ To promote its goods need some research on various information
n regarding such as the product market, distribution, target
market, demographic background of targeted market, message,
approach, buying trends and competitors.
+ Advertising is a method to distribute messages to promote a
service or a product paid by the advertisers.
CRITICAL SUCCESS FACTORS
WHEN MARKETING HALAL
PRODUCT
+ Know the market clearly
+ Gain consumer trust
+ Brand on Islamic values with universal trait
+ Target for a niche market
+ Be the first in the industry
+ Partnership with established company
THANK YOU