Marketing Mix of Islamic Banking Industry

Marketing mix is marketing logic through which the company is able to achieve the objectives of its marketing department

. Because the basis of Islamic Banking industry is completely dissimilar from the conventional banking therefore, Islamic Banking should be marketed in a different way to attract more customers.

1. Product

Islamic banks are trying to fulfill the requirements of their customers by offering innovative products and services so as to compete the market. The following are the basic types of Islamic products offered.

Murabaha: (Cost plus)

Istinsa: (leasing structured mode)

Mudaraba: (profit-sharing)

Salam

Musharaka: (equity participation)

Diminishing Musharaka

Ijara and Ijara wa-Iqtina: (leasing and lease purchase)

It is significant to differentiate the Islamic Banking Products and the products of conventional banks, only then people would be attracted towards these products or else not many customers would be attracted towards these products.

2. Price

It is important for Islamic Bank to charge comparable prices as the conventional Banks in Pakistan charge because if higher prices for the products and services are charged then there would be lesser people attracted towards these products.

3. Promotion

Promotional activities need to focus more from the Islamic point of view. The marketers need to promote the products in such a way that Banking has become Halal now, or like are you still involve in Riba which is Haram, etc. By marketing the products this way more people will start think about their decisions of using conventional Banks and shift to the Islamic Banks.

4. Place

Placing of Islamic Product can play a vital role in increasing the demands of Islamic Products. The promotional activities need to be focused on areas where more people can be familiarized so that the cost of promotion pays back.

With the regular 4P's of marketing, another P has evolved in the recent times and emerged as 5th important P of marketing mix. The 5th is packaging, and in the world of advertising there people decide to buy a product within seconds, packaging matters a lot. Packaging is very important because not only it keeps the product in its original quality, but it also portrays a brand identity. Packaging also helps a lot in brand awareness and its positioning. Hence the marketing mix diagram has changed its shape now, and it also focuses on appearance of the product.

5. Packaging

Packaging has become so much important especially since the last decade or so. Nowadays, Packaging is considered as the 5th P of Marketing Mix. The better packaged products do well against ordinary packaged products. Similar is with services and banking industry, the better packaging of products and services you provide the more customers would be attracted towards your products. In banking industry, packaging is like the overall appearance of the company, branch, promotional activities, people, quality of services, etc.

Marketing Mix of Islamic Banking Industry

By: Ahsan Ayub

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