THE ISLAMIC MARKET (SOUQ)

1. THE ISLAMIC MARKET (SOUQ) From “The Principles of Islamic Marketing” by Baker Ahmad Alserhan

2. Outline • Introduction • The Market (Souq) • Pre-Islamic Arab Markets • The Importance of Market in Islam • The Organization of Markets in Islam • Market Etiquette in Islam • Islamic Marketing Defined • Religion-Based Marketing • Local Islamic Marketing • International Islamic Marketing

3. Introduction • The use of the word ‘Islamic’ is not just a name to describe a company’s operations. It has huge implications for an entire business philosophy that incorporates every single aspect of the business. • Islamic marketing addresses how the Muslim market’s behavior is shaped by various and cultural concepts affecting almost all economic decisions in these markets. This Photo by Unknown Author is licensed under CC BY-SA

4. Introduction (cont.) • Islamic marketing blends the religious, the ethical, and the business worlds to: 1) Create a more humane world market (fair deal, reasonable profit, and better-maintained environment) 2) Help both Muslim and non-Muslim marketers understand the needs of the massive Muslim marketers 3) Provide marketers with current information on the behaviors of Islamic marketers and their needs as well as analyzing future trends

5. The Market (Souq) • In Arabic, Souq (قوس) means the place where selling take place • Also, it means any place where a sale occurs • Also, it means wherever and whenever on exchange takes place between buyer and seller under mutually agreed terms and conditions This Photo by Unknown Author is licensed under CC BY-SA

6. Pre-Islamic Arab Markets • Example of pre-Islamic Arab Markets: • Souq Hajar on the western coast of the Arabian Gulf • Souq Aukaz near Mecca • Souq Eden in Yemen • The markets were hold during the four holy months of the Arabic lunar year (Dhu al-Qa’dah, Dhu al-Hijjah, Muharram, and Rajab) • The markets were controlled by princes, tribal chiefs, or local representatives • Classified into three categories: 1. Markets subject to foreign authority (ex. Souq Hajar) 2. Market controlled solely by Arabs and run by their leaders and nobles (ex. Souq Aukaz) 3. Mixed markets where the Arabian influence was not particularly strong (ex. Souq Eden) This Photo by Unknown Author is licensed under CC BY-SA-NC

7. The Importance of Market in Islam • Islam gives special attention to the market. It urges people to go to markets to trade and make profit • In Islam, believers are not only dwellers in mosques. They are also people of profession and trade, although their worldly activities do not take a toll on their religious duties This Photo by Unknown Author is licensed under CC BY-SA

8. The Organization of Market in Islam • Markets in Islam were under the authority of the Hisbah chaired by the market governor or supervisor (Muhtasib) • Muhtasib’ duties included continuous inspection and supervision of transactions in the market, including terms, conditions and quality • He had to be of good character, knowledge able about both trade and shariah and fair • The Muhtasib would supervise markets, monitor weights and measures, disperse crowds, and remove obstacles • The Muhtasib system was perfected during the muslim reign in Spain, which ended in 1495, and the system is still used in Spain This Photo by Unknown Author is licensed under CC BY-SA

9. Characteristics of the Muhtasib • Public employee • A full-time job • To hear and resolve disputes and complaints • To look for and remove violations • Authority to employ assistants • To ensure market compliance with the teaching of Islam • It can be a women • Performing the job discreetly • Personal character: kind, cheerful, and well manner

10. General Duties of the Muhtasib • Monitoring market accessibility • Dividing market into the type of product or service • Monitoring scales, weights, and measures • Inspecting the money market • Monitoring deals and transaction • Preventing monopolies • Monitoring the operations of brokers and middleman • Supervising the slaughter of animals • Preventing men from going into women’s markets

11. Market Etiquette in Islam • Being knowledgeable about trading and religion • All people are equal, and no one has a claim • No intercepting products before they arrive at the market • Don’t force the buyer into paying a higher price • The trade in goods from disputed sources is forbidden • Entering the market by du’a’ (ءاَعُد) • No shouting or raising the voice in the markets • Market should be kept clean • Greeting to each other • The armed person should secure his weapon • Refraining from sitting on roadsides • Participating actively in community affairs This Photo by Unknown Author is licensed under CC BY-ND

12. Islamic Marketing Defined The term ‘Islamic Marketing’ can be understood in several ways and it be: 1) Religion-based marketing 2) Marketing within Islamic markets 3) Marketing to or from Islamic Market

13. Islamic Marketing Defined (cont.) Understanding term ‘Islamic Market’ is composed of: 1) Primary Islamic markets—a market where most of population are Muslims 2) Secondary Islamic markets—a market composed of significant Muslim minorities 3) Emerging Islamic Market—a small evolving market for Islamic products This Photo by Unknown Author is licensed under CC BY-NC-ND

14. Islamic Marketing Defined (cont.) Non-Islamic markets are those where the target consumers adhere to religions other than Islam. This includes countries where most of the population are not Muslims or non- Muslim minorities in Islamic countries This Photo by Unknown Author is licensed under CC BY-SA-NC

15. Islamic Marketing Defined (cont.) An Islamic product can be understood in three ways: 1) Shariah-compliant products—these are products that are manufactured and promoted as Halal 2) Products produced in Islamic countries—almost all these products are Halal since they are destined for local or regional Islamic market 3) Products produced by Islamic company—Products produced by company that capitalizes on Muslim sentiments to make gains in the marketplace This Photo by Unknown Author is licensed under CC BY-SA-NC

16. Islamic Marketing Defined (cont.) An Islamic company can be understood in difference ways: • Islamic company by product—specialize in production/distribution of goods that comply with the teaching of Islam • Islamic company by location—main business operations are located in Muslim countries • Islamic company by ownership—owned by Muslim shareholders • Islamic company by customer (Islamic- friendly company)—to meet the needs of Muslim consumers This Photo by Unknown Author is licensed under CC BY-ND

17. Religion-Based Marketing: Shariah- Compliant Marketing • Adhering to the teaching of Islam regarding all facets of trade • Applying Islamic business ethics • Observing market etiquette as dictated by Islam This Photo by Unknown Author is licensed under CC BY-SA

18. The practices those are carried out by marketers within the Islamic markets and directed mainly at Muslim consumers Local Islamic Marketing: Marketing Within Islamic Markets This Photo by Unknown Author is licensed under CC BY-NC-ND

19. International Islamic Marketing: Marketing to or from Islamic Markets Marketing is carried out by: • Multinational companies targeting Muslim consumers in the various Islamic markets • Islamic companies targeting international markets outside the Islamic market This Photo by Unknown Author is licensed under CC BY

20. Thank You Designed by IslamicMarketing.xyz