The document provides an overview of marketing concepts and history. It discusses how marketing began to develop in the early 20th century as the view of demand expanded beyond purchasing power alone. The definition of marketing by the American Marketing Association is presented as "the activity set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large". The document also covers the history and concepts of Islamic marketing, deceptive marketing practices, and factors that contribute to deceptive marketing.

1. Introduction
Lecture 1st
BS IBF 4

2. Marketing: Concept and History
• A textbook writer once noted, "Marketing is not easy to define. No one
has yet been able to formulate a clear, concise definition that finds
universal acceptance".
Needs are states of felt deprivation. Wants are the form human needs
take as they are shaped by culture and individual personality. When
backed by buying power, wants become demands. Given their wants
and resources, people demand products and services with benefits that
add up to the most value and satisfaction.
Telling and Selling Satisfying Customer Needs

3. Marketing Process

4. Market System

5. • The history of marketing can be divided into two types. The first is
history of marketing thought and the second the history of marketing
practice. Marketing thought began to develop at the beginning of the
twentieth century. It was found in 1900 that demand consisted of
more than the purchasing power. It combined the desire with
purchasing ability. Advertising and salesmanship showed that
demand is not only affected by the existence of supply but can be
shaped by other factors (Bartels, 1976). Therefore, anew behavioral
shift towards business brought a revolution in the economy and the
term “Marketing” was used to refer to this revolution (Bartels, 1976).
Marketing philosophy started to dominate business during the 1950s
(Kotler, 2011) and continued until the twenty first century.
History

6. Definition of Marketing
According to American Marketing Association, is “the activity set of
institutions, and processes for creating, communicating, delivering,
and exchanging offerings that have value for customers, clients,
partners, and society at large”.

7. Sustainability Marketing
• Tracing the evolution of the various definitions of marketing proposed
during the last 30 years reveals two trends: (1) expansion of the application
of marketing to non-profit and non-business institutions; e.g. charities,
education, or health care; and (2) expansion of the responsibilities of
marketing beyond the personal survival of the individual firm, to include
the betterment of society as a whole.
• Environment and Climate
• Hygienic Food
• Modesty
• Hunger
• Green Marketing

8. Business Ethics
• The development of an ethical attitude and behavior in conducting business is
comparatively new. In 1960, discussions on business ethics issues arose particularly in
countries of German origin. In this period, the education on ethics first started in the
Administration and Business Faculties in USA specifically. The contributions of
philosophers applied ethics to the field of business. Multinational corporations mostly
from USA and Europe began to develop in the following decade.
• A corporate code of ethics developed due to cultural differences and new and changed
methods of performing and conducting business. The efforts of dedicated university
professors who taught business ethics in MBA programs and business schools resulted in
the appearance of the first publications related to subject, the first scientific journal to
appear was called the Journal of Business Ethics. Between the 80's and 90's a number of
academic networks (the Society for Business Ethics in the United States and the
European Business Ethics Network in Europe) and specialized magazines (Business Ethics
Quarterly, Business Ethics and European Review) and encyclopedias have been published
including the Encyclopedic Dictionary of Business Ethics in the USA and Lexicon der
Wirtschaftsethik in Germany). These initiatives were followed by the organization of
special forums and the creation of the International Society for Business Economics and
Ethics (ISBEE).

9. Islamic Marketing Concept
• Shariah Law
• Justice
• Value Maximization
• Accumulation of Wealth
• Consumers
• Resources
• Spirituality
• Ethics

10. History
• The history of Islamic marketing started with the Prophet of Islam
Muhammad (Peace be upon him) himself as he was a trader and used
to sell the products of Sayida Khadija (Allah be pleased with her), who
became his first wife.
• The Caliphates of Islam followed the teachings of Holy Prophet (peace
be upon him) and set the standard rules and regulations for markets
and businesses.
• The subject of Islamic marketing got the attention of academicians,
researchers and practitioners in 2007 when the first book “Marketing
in an Islamic Environment” was published (Nestorovic´, 2007)

11. • This book was followed by three more books on the subject, all of which
became best seller. Paul Temporal penned his book in 2011 and was
influential in organizing the first Islamic Marketing and Branding Forum at
the University of Oxford’s Business School. The second book was authored
by Baker Ahmed Alserhan in the same year. Alserhan played a key role in
organizing the First Global Islamic Marketing Conference (GIMC), held in
Abu Dhabi in 2009.
• This conference was followed by another international conference on
Islamic Marketing and Branding in 2011 in Malaysia. Since then, every year,
a new conference has been conducted and, so far, conferences have been
held in the UAE, Turkey, Qatar and Malaysia. The third book, a collection of
twenty-four chapters by scholars and practitioners from around the globe,
was edited by Ozlem Sindikci and Gillian Rice in 2013. The journal of Islamic
Marketing was launched in 2010 to lay the foundation of Islamic Marketing
as a new discipline.

12. Concept of Deceptive Marketing
• Deceptive marketing means use of unethical promotion methods for
advertisements, such as usage of false, puzzling and misleading statements
during the advertisement process.
• exaggeration, confuse, misleading and omission statements about product
• Deceptive marketing makes customers think that they are getting higher
value product and services in a competitively low price.
• High and exaggerated price claims about product is also a type of deceptive
marketing. When labels on packages contain information, which is false
about the ingredients, their size, weight, taste, this is the deceptive
packaging. Selling dangerous and damaged or defective products without
explaining the defect, failing to fulfill an undertaken promise, or not fulfill
warranty obligations are also part of deceptive marketing

13. Examples
• Deceptive advertising in TV commercials: often masked by emotions, humor, arousal and fear.
Deceptive advertising results in the disappointment of the customer, which is dangerous for the
company’s reputation.
• One major effect of deceptive marketing practices is the health of customers. People see the
advertisement by a restaurant and go to eat there but the food is injurious to health and does not
have the quality which was advertised.
• Tobacco companies advertised their products to make a profit but are not concerned about
health. This is also deceptive marketing.
• Unethical drug promoting practices in pharmaceutical industries is one of the deceptive practices
of the market. Pharmaceutical industry achieves their targets of profit maximization or the good
of the industry with the help of doctors, government and private hospitals, pharmacies and
health related agencies. But this is unlawful because industry does not meet with the needs of
patients.
• Cosmetics industry also advertises its product in deceptive marketing practices; the cosmetics
advertising industry often favors fair complexion over a darker one. This is also unethical.

14. Factors of Deceptive Marketing Practice
• Secularization (Individual, Organization, Govt, Society)
• Modernization (material, industrial and ideological modernization)
• Greed
• Illicit Earning of Wealth