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ISLAMIC MARKETING MANAGEMENT FOR SMES
Widyantono Arif
Hasanuddin University, Indonesia
widyantonoarif@gmail.com
Siradjuddin
Alauddin State Islamic University, Indonesia
siradjuddin@uin-alauddin.ac.id
PAPER INFO ABSTRACT
Received:
December 2021
Revised:
December 2021
Approved:
December 2021
Background: Small and Medium Enterprises (SMEs) are the most popular
group of companies in the national economy (Kanibir, Saydan and Nart,
2014). The company must be effective in every activity especially in
marketing which has become fundamental to success in the market and create
a competitive advantage.
Aim: The purpose of this article is to reveal the stages of the task of a
marketing manager/small and micro sharia businessman in carrying out
marketing activities that can help achieve organizational goals.
Method: The researchers deployed qualitative approach by reviewing
relevant articles.
Findings: The Elements of the Marketing Mix are products, prices, places,
promotion, people, physical evidence, and process. Thus the task of
marketing managers / small business entrepreneurs and micro-sharia is to
choose and carry out marketing activities that can help achieve organizational
goals.
KEYWORDS
Marketing manager, entrepreneur, small and micro business
INTRODUCTION
Small and medium enterprises (SMEs) are recognized as one of the main contributors to
economic growth, development and employment (Dahnil et al., 2014). The main underlying
assumption is that SMEs, compared to large multinational corporations (MNEs), rely more on
resources controlled by other companies that can be accessed through the development of
network relationships (Kurt et al., 2020). Since a company's market success is a consequence
of its market performance, it would be relevant to state that performance is a direct determinant
of its consequences. On the other hand, Small and Medium Enterprises (SMEs) are the most
popular group of companies in the national economy (Kanibir et al., 2014). The company must
be effective in every activity especially in marketing which has become fundamental to success
in the market and create a competitive advantage (Navrátilová & Milichovský, 2015).
One of the important concepts in management science, namely entrepreneurship (Korpysa,
2020). Small and medium-sized enterprises (SMEs) are often the driving force of the country's
economy, but do not always fully exploit its innovative and creative capacity because many of
these companies do not know the technology of tools that are currently one of them is social
networks (Vásquez & Escamilla, 2014). Since then, companies have started adding online
infrastructure to their business models as well. In addition, they changed the revenue model
due to the tremendous profits on the internet and modified and updated key elements of
traditional marketing (Öztamur & Karakadılar, 2014). It is clear that without successful sales a
Islamic Marketing Management for SMEs
324 Interdisciplinary Social Studies, 1(3), Dec 2021
company will not be able to continue its activities, which means that it is equally clear that
without planning relevant marketing activities, both for the short term (Sales-oriented),
medium and long term (Oriented to meeting the needs and desires of consumers), SME
managers will not be able to adapt to changes in the internal and external environment in their
specific areas of activity (Izvercian et al., 2016).
The fundamental difference between sharia marketing systems and conventional
marketing lies in the fact that Islamic law-based marketing is an amalgamation of the concept
of value maximization with the principle of 'fairness' for the wider well-being of society (Saeed
et al., 2001). These principles offer a way to create value and improve the standard of living of
society in general through commercial activities. This important distinction, resulting from the
application of Islamic sharia principles, provides an incentive for Islamic entrepreneurs to seek
products and services that are in accordance with Islamic ethics (Sandikci, 2011). Although the
idea of Sharia marketing is relatively new, compared to sharia economy as well as islamic
finance and banking, it has attracted a lot of attention (Noor, 2010). As a new discipline, Islamic
marketing is a field that still takes time to realize the potential benefits in practical terms.
However, studies and research on Islamic marketing are still very limited (Ahmad Azrin
Adnan, 2013). Therefore, the journal will discuss related to the management of small and micro
sharia business marketing.
Definition
Marketing is a basic activity that must be understood in an effort to maintain the company's
survival to grow and earn profits. According to P. Kloter (2003), marketing is a social and
managerial process in which individuals and groups get the things they need and want through
the creation, supply and exchange of products with others. From the above understanding it
can be concluded that marketing is:
1) Creating products and services that consumers need and want
2) Set competitive and affordable prices by consumers
3) Distributing the goods goes smoothly
4) Promote these goods and services to be known, in demand, purchased and always
remembered by consumers.
Thus the job of the marketing manager is to choose and carry out marketing activities that
can help the achievement of organizational goals.
Difference between Conventional and Sharia Marketing
Table 1. Difference between Conventional and Sharia Marketing
No.
Indicator
Conventional
Sharia
1.
Basic
Concepts
and
Philosophies
Conventional marketing
is value-free marketing
and not fundamental to
God in every activity.
So that in conventional
marketing can a
marketer give empty
promises only as a
consumer lure to buy the
One must feel that in every
marketing activity he is always
supervised by Allah SWT, so he
will be very careful in
marketing the products he sells.
A Sharia marketer will not give
a mere empty promise that aims
only to find customers. A sharia
marketer will not want to give
Islamic Marketing Management for SMEs
325 Interdisciplinary Social Studies, 1(3), Dec 2021
product. Marketers only
attach importance to the
achievements that have
been set by the
company.
something misleading to his
customers because he always
feels that Allah SWT always
watches over him and will ask
for accountability on the Day of
Resurrection.
2.
Marketer
Ethics
A free marketer uses all
sorts of means to get
consumers even in ways
that are not justified by
sharia. In conventional
marketing, a marketer
can make a lie by
overestimating the
product offered, this can
cause disappointment
from the consumer after
he consumes it because
the quality of the
product is far from
expected.
A Sharia marketer is very firm
in ethics in doing marketing to
prospective customers. He
avoids giving false promises, or
overestimating the products
offered. Sharia marketers will
honestly tell the advantages and
disadvantages of the products
they offer.
3.
Approach to
Consumers
Consumers are placed as
objects for sales targets
only. Consumers can be
disadvantaged because
promises and realities
are often different. The
company after getting
sales targets, will not
care about consumers
who have bought their
products without
thinking about
disappointment over the
promise of the product.
The value of family is
not felt because the
company considers
consumers as cash cows
to achieve their sales
targets.
Consumers in sharia marketers
are placed as equal partners,
where both the company as the
seller of the product and the
consumer as the buyer of the
product are in the same
position. The company does not
consider consumers as cash
cows to buy their products, but
businesses will make
consumers as partners in
business development. A Sharia
marketer will always strive to
create positive product value
for his consumers including by
asking for feedback from
consumers. The value of family
is felt in Sharia marketing
because the concept of partners
already consider consumers as
their own brothers who will be
helped and will not be harmed.
4.
How to Look
at
Competitors
Competitors as
opposing parties that
must be defeated even if
it can be turned off so
that the existence of
business can be further
advanced. This concept
Don't think of a competitor as a
party to beat or even turn off.
The concept of per-rival in
Sharia marketing so that every
business is able to spur itself to
be better without having to
become a competitor.
Islamic Marketing Management for SMEs
326 Interdisciplinary Social Studies, 1(3), Dec 2021
resulted in competitors
after being defeated,
eventually the
company's innovation
power decreased
because there was no
motivation and
competitors.
Competitors are partners who
help succeed the application of
Sharia economy in the field,
and not as opposed to being
turned off.
Source: Processed data
As for marketing goods, a Muslim is prohibited from using perjury as in the following
hadith:
Meaning:
“"Perjury (bombastic so as to make the sale of goods) brings breadth but eliminates
work." Ibn Fajar said: "Removing blessings"” (Other Matan: Bukhori 1945, Nasa'I 4385,
Abu Daud 2897, Ahmad 6909,6992,8981).
From the hadith it can be understood that in promoting a product, a Muslim should not be
excessive with perjury, bombastic, but must be reality. Because, if done bombastically, it can
mislead and deceive consumers. If one day the consumer realizes the lie of a product, then they
will definitely leave it. As a result, production will decrease, of course the profits are getting
smaller (Bustami, 2019).
Marketing Mix
Marketing Mix is a mixture of controllable marketing variables used by a company to
pursue the desired level of sales in the target market (Nurhadi & Salim, 2019).
Marketing management is grouped into four aspects that are often known as marketing
mix or marketing mix. According to Kotler & Armstrong (2013) the marketing mix is a
collection of controlled tactical marketing tools that companies combine to produce the
response they want the target market to respond to. Kotler &Armstrong (2013) suggests that
4P marketing approaches namely product, price, place and promotion are often successful for
goods, but a variety of additional elements require attention and distribution systems. The
Elements of the Marketing Mix are as follows (Nurhidayat, 2018):
1) Product
A product is everything that can be offered to a market to meet a need. Products
marketed include physical goods, services, people, places, organizations and ideas. It can
also mean that a product is a collection of real and unreal attributes, including packaging,
color, price, quality and brand coupled with its services and sales reputation.
Islamic Marketing Management for SMEs
327 Interdisciplinary Social Studies, 1(3), Dec 2021
2) Price
The price is the amount of money charged to a particular product. Companies set prices
in a variety of ways. Prices are often set by top management in small companies but in large
companies, pricing is usually handled by division managers or product line managers even
within these companies, top management devises goals and policies on general pricing and
often approves prices proposed by lower-ranked management.
3) Place
Place in service is a combination of location and decision on distribution channels, in
this case related to how to deliver services to consumers and where the location is strategic.
4) Promotion
Promotion is one of the variables in the marketing mix that is very important to be
implemented by companies in marketing service products. Promotion is all activities
intended to convey or communicate a product to the target market, to inform about its
privileges, uses and most importantly about its existence, to change attitudes or to
encourage people to act.
5) People
People here means people who serve or who plan to serve consumers. Most services
are served by people so that the person needs to be selected, trained, motivated so as to
provide satisfaction to customers.
6) Physical Evidence
Physical evidence is a physical means, the environment of service delivery, between
producers and consumers interacting and every other component that facilitates the
appearance of services offered. In an educational and training institution of course that is
physical evidence is a building / building, and all the facilities and facilities contained in it.
7) Process
The process takes place outside the consumer's view. The consumer does not know
how the process is going, which is important the services he or she receives must be
satisfactory. The process occurs thanks to the support of employees and the management
team that organizes all processes to run smoothly. The process of delivering services is very
significant in supporting the success of marketing educational services and also provides
satisfaction to trainees.
Sharia Marketing Mix
According to Kertajaya and Sula (2014) in applying the concept of Islamic marketing there
are four characteristics of Sharia marketing (Syariah Marketing) that can be a guideline or
guide for phak who do marketing, this can be explained as follows (Nurhidayat, 2018):
1) Sue (Rabbaniyah)
The application of sharia marketing must comply with all rules or laws that apply for
use in all its activities. This also applies to the marketing concept offered through the
Marketing mix. The process of implementing product design, setting prices, promotions, is
always carried out on sharia basis in accordance with the provisions set in Islamic values.
2) Ethical (Akhlaqiyyah)
Marketing parties who do marketing using sharia principles must prioritize or attach
importance to moral aspects (moral, ethical) in all their activities.
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328 Interdisciplinary Social Studies, 1(3), Dec 2021
3) Realistic (Al-waqi'iyyah)
Sharia marketing is a concept that is not exclusively mobile, fanatical, antimodernity
and rigid but the concept of Sharia marketing is a marketing model that has a high flexibility
value in accordance with Islamic values.
4) Humanistis (Insaniyyah)
The concept of Humanist or (Insaniyyah) provides an understanding that the life in
which the concept of sharia is applied provides guidance in certain things such as
maintaining human nature and nonhuman nature and raised by the almighty with the
principle of sharia firm.
METHOD
The researchers used qualitative approach in conducting the research by reviewing relevant
articles from different journals. It was so that the proper results can be displayed and give more
insight into the topic discussed. For the data analysis, the researchers extracted data from
different journals before concluding the results by filtering only the main points of each journal
article.
RESULTS AND DISCUSSION
Market Opportunity Analysis and Marketing Research
To create a product that is cooled and needed consumer marketing managers must smooth
the environment of consumers and competitors. In this case, there are two known theories
(Abdurrahman, 2013):
1) Equality theory states that people evaluate the leader's treatment of them as opposed to
the leader's treatment of others.
2) Equity theory states that compensation must be fair in accordance with the proportion
of contributions.
Strategies to Increase Satisfaction and Morale Work
There are many ways that managers can do to increase motivation for satisfaction or
morale, including:
1) A decent compensation program
2) Security of workers
3) Flexible work schedule
4) Employee attachment program
5) Incentive program
6) Job expansion program
7) Management by Objective (MBO) means allowing employees to participate in
determining their goals and deciding which ways to accomplish their tasks.
In analyzing these consumers and competitors, there are several questions that managers
should understand, among others:
1) What products are needed and desired by consumers?
2) Whether the value and usefulness of the product will really provide satisfaction to
consumers?
3) Does the product have added value compared to a competitor's product?
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329 Interdisciplinary Social Studies, 1(3), Dec 2021
4) Which consumer will buy the product?
5) How far is the purchasing power of this consumer group.
6) To better know the market opportunities of products and services to consumers,
companies need to conduct marketing research.
7) "Marketing research is the study of the needs and wants of consumers and the best ways
to have them." – R.W. Griffin
Understanding Market/Consumer Behavior
After doing marketing research, the next step for a marketing manager is to understand
consumer behavior. Attitude is the evaluation, emotional-onal feelings and tendency of actions
that benefit or do not benefit a person to bebe-rapa objects or ideas. Consumer behavior can be
defined as the process of decision-making and the physical activity of individuals involved in
the process of evaluating, acquiring, using or being able to use goods and services (Muka et
al., 2006).
This consumer behavior is important to be traced by marketer managers to know the
following:
1) What factors influence consumer purchases, whether psychological factors, personal
influences, social influences, cultural influences or marketing mixes.
2) How is the consumer purchasing decision process
3) Whether the consumer is satisfied and loyal after making the purchase of the product
or service.
Understanding Market/Consumer Behavior
After doing marketing research, the next step for a marketing manager is to understand
consumer behavior. Attitude is the evaluation, emotional-onal feelings and tendency of actions
that benefit or do not benefit a person to bebe-rapa objects or ideas. Consumer behavior can be
defined as the process of decision-making and the physical activity of individuals involved in
the process of evaluating, acquiring, using or being able to use goods and services.
This consumer behavior is important to be traced by marketer managers to know the
following:
1) What factors influence consumer purchases, whether psychological factors, personal
influences, social influences, cultural influences or marketing mixes.
2) How is the consumer purchasing decision process
3) Whether the consumer is satisfied and loyal after making the purchase of the product
or service.
Product Strategies of Goods and Services
A product is everything that is offered to the market to be noticed, purchased to be used,
or consumed in order to satisfy the wants and needs of consumers. A service is an activity or
benefit that can be offered by one party to another, which is essentially intangible and does not
result in any particular ownership. Thus it can be concluded that a product can be considered
to contain a certain amount of needs. In addition, the product can also be seen as a collection
of benefits that consumers are looking for. The product includes not only physical attributes,
Islamic Marketing Management for SMEs
330 Interdisciplinary Social Studies, 1(3), Dec 2021
but also services that include non-physical properties, such as price, brand, color, service and
others.
Product classification by usage / character consists of three mamac, namely consumer
products, industrial products and services. Consumer products consist of convenience goods,
shooping goods, specialty good,and unsought goods. Convenience goods are products that are
easily obtained or purchased, such as soap, toothpaste, cigarettes and others. Shopping goods
are products purchased in certain places with limited consideration. Specialty goods are
products that have characteristics and special brands, such as motor cars and others. Unsought
goods are products that are rarely or sought after only at certain times such as mosque frames.
LifeCycle and Product Development
The product also has times of introduction, success and deterioration The life cycle of
the product is realized by:
1) Introduction period
2) Growth period, the number of heyday, meaning that the product is much in demand and
purchased by consumers so that the company earns a large profit.
3) Expiry period or maturity interest and desire of the product begins to decrease
4) The period of decline in product purchase interest decreased completely even the
company began to lose money.
To maintain the survival of the product so that interest and purchase remain good one of
the company's efforts is to do product development. The development of this product according
to Kotler, consists of eight stages, namely:
1) Creating ideas/ ideas
2) Filtering ideas
3) Business analysis
4) Development and testing of concepts
5) Strategy formulation
6) Product development
7) Marketing test
8) Commercialization
Pricing Strategy
1) Understanding price
Price is the value given by consumers to goods or services. Therefore the key to
determining the price of the product lies in understanding the value that consumers will
give to the product.
2) Pricing Objectives
Pricing by a company is intended for various purposes including:
a. Profit maximalitation
b. Market share pricing
c. Current revenue pricing
d. Profit pricing target
e. Promotional pricing
Islamic Marketing Management for SMEs
331 Interdisciplinary Social Studies, 1(3), Dec 2021
3) Factors that affect price
a. Demand for theproduct, i.e. the company needs to estimate the demand
b. Target share of the marketshare, targeted by the company
c. Competitive reaction is the reaction of competitors.
d. Use of creams skimming pricing of penetration pricing that considers the steps that
need to be taken when a company enters the market at a high or low price.
e. The cost of producing or buying a product.
Pricing Strategies and Tactics
1) Line pricing is determining a certain number of prices for a particular product category
2) Psychological pricing, which is a pricing tactic that benefits fromthe fact that consumers
are not always rational inassessing the prices listed
3) Discounts/ or discounts
4) Cost oriented pricing
5) Demand oriented pricing
6) Competitive oriented pricing
7) Discrimination pricing
Distribution Strategy
Distribution includes efforts to ensure that the product is in the appropriate place.
Intermediaries play a role in distributing goods from consumers to the hands of consumers. In
detail there are four main tasks of intermediaries, namely:
1) Accumulating, which is collecting goods from various products
2) Bulk breaking divides a manufacturer's products into smaller quality.
3) Sorting divides each of those smaller qualities into homogeneous product lines with
specific specifications and quality levels.
4) Assorting is selling a wide range of products together.
Promotional Strategies
1) Understanding and Purpose promotion
Promotion is one of the determining factors for the success of a marketing program.
Promotion is all activities aimed at introducing, persuading and reminding customers of a
product or intermediary.
Thus the main purpose of promotion is to inform, influence, persuade as well as,
remind customers about the product or company.
2) Promotion strategy
As is known that there are six promotional tools, namely advertising, face-to-face sales
(personal selling). Sales promotion, publicity, public relations, direct marketing. Which
combination of the six promotional tools is the most appropriate to use.
Thus the main task of business strategy planning is to determine the combination of
promotions that will achieve the organization's promotional goals. Rarely does a company use
only one of the promotions.
Islamic Marketing Management for SMEs
332 Interdisciplinary Social Studies, 1(3), Dec 2021
CONCLUSION
Marketing is a basic activity that must be understood in an effort to maintain the
company's survival to grow and earn profits. Marketing is a social and managerial process in
which individuals and groups get the things they need and want through the creation, supply
and exchange of products with others. The Elements of the Marketing Mix are products, prices,
places, promotion, people, physical evidence, and process.
Thus the task of marketing managers / small business entrepreneurs and micro-sharia is
to choose and carry out marketing activities that can help achieve organizational goals, namely:
1) Market Opportunity Analysis and Marketing Research; 2) State of Increasing Satisfaction
and Morale; 3) Understanding Market/Consumer Behavior; 4) Product Strategies of Goods and
Services; 5) LifeCycle and Product Development; 6) Pricing Strategies; 7) Pricing Strategies
and Tactics; 8) Distribution Strategies; and 9) Promotional Strategies.
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