E-Marketing Strategies Exploiting Social Media for Islamic Banking

Abstract

The concept of e-marketing is one which has gained increasing interest within Islamic businesses in recent years. Amin [3] asserts that one of the most critical issues to consider is the legal and moral aspects of e-marketing and the extent to which they fit comfortably within principle notions of Islam and Sharia law. He states that "e-business is a permissible means of doing business provided it is performed in the boundary of Shariah Islamiyyah”. By this he means that any form of e-marketing must clearly demonstrate the key principles of Islam, meaning that marketing must be devoid of any contentious or exaggerated claims and there must be no excessive risk. Of course, one of the principal features of marketing as noted by Kotler and Keller [46] is that marketing is known for accentuating the benefits and features of products and services, and downplaying the negative attributes which potentially could lead to a consumer making an informed decision on the basis of this unbalanced presentation. Arguably, this presents a form of risk which may be at odds with the fundamental tenets of Islam. This paper presents a critical literature review of alternative e-marketing approaches.

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International Journal of Emerging Technology and Advanced Engineering
Website: www.ijetae.com (ISSN 2250-2459, ISO 9001:2008 Certified Journal, Volume 4, Special Issue 2, February 2014)
International Conference on Innovative Trends in Science, Engineering and Management (ITICSEM 2014), Dubai, UAE Page 1
E-Marketing Strategies Exploiting Social Media for
Islamic Banking
Ahmad Roumieh
Information Technology Department – Applications
Support Unit
Kuwait International Bank
Kuwait City, Kuwait
ahmad_roumiya@hotmail.com
Lalit Garg
Department of Computer Information System
University of Malta
Msida, Malta
lalit.garg@um.edu.mt
Abstract—The concept of e-marketing is one which has
gained increasing interest within Islamic businesses in
recent years. Amin [3] asserts that one of the most critical
issues to consider is the legal and moral aspects of e-
marketing and the extent to which they fit comfortably
within principle notions of Islam and Sharia law. He states
that "e-business is a permissible means of doing business
provided it is performed in the boundary of Shariah
Islamiyyah”. By this he means that any form of e-
marketing must clearly demonstrate the key principles of
Islam, meaning that marketing must be devoid of any
contentious or exaggerated claims and there must be no
excessive risk. Of course, one of the principal features of
marketing as noted by Kotler and Keller [46] is that
marketing is known for accentuating the benefits and
features of products and services, and downplaying the
negative attributes which potentially could lead to a
consumer making an informed decision on the basis of this
unbalanced presentation. Arguably, this presents a form of
risk which may be at odds with the fundamental tenets of
Islam. This paper presents a critical literature review of
alternative e-marketing approaches.
Index Terms— E-Marketing; Social Media Marketing; Financial
Products; Islamic Banking
I. INTRODUCTION
Many organizations are turning to e-marketing strategies
and social media in order to raise awareness of their products
and services within their target market [27]. Traditionally,
marketing strategies and adhered to the basic principles of
identifying a target market and then developing a marketing
strategy or advertising campaign directly aimed at the target
market in an effort to raise awareness of a business’s products
and services. However, as the popularity of social media has
increased with the increased sophistication in the technology,
social media and e-marketing strategies have moved to the
forefront of contemporary best practices [9]. Not only does
social media allow organizations to create an e-Word-Of-
Mouth (e-WOM) discussion around their products, the
technology available allows businesses to very carefully define
their target market and to track and measure customer interest
and conversion. This increased sophistication allows
businesses to develop highly tailored marketing strategies and
also to utilize their marketing budgets far more effectively
[32].
There is a wealth of evidence which demonstrates that
word-of-mouth recommendation and referral are two of the
most powerful forms of marketing [43]. Moreover, the more
personal the product or service, the more likely it is that
potential customers will seek recommendations from friends
and family. Social media offers an unrivalled opportunity for
businesses to build their reputation in the marketplace and also
to form strong relationships with existing and future potential
customers [59]. Customer Relationship Management (CRM)
is another fundamental aspect of successful e-marketing, as
data gathered from e-marketing exercises can be used to apply
CRM principles to future potential customers on a highly
targeted and cost-effective basis. The key to successful e-
marketing is to gather detailed and specific information about
the target market, and then utilize this information to inform
focused marketing strategies to engage with current and
potential customers [44]. The benefit of social media is that it
allows near instantaneous communication on a highly
personalized basis, thus helping to build the foundation of a
very strong relationship with customers.
Already there is evidence in the literature indicated that
different products and services require differentiated social
media approaches, and that cultural context is also an

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International Conference on Innovative Trends in Science, Engineering and Management (ITICSEM 2014), Dubai, UAE Page 2
influencing factor [12]. All of these considerations should be
built into e-marketing strategies if organizations are launching
into this format of marketing for the first time [33]. Too many
businesses have a fragmented approach to social media
marketing, and fail to appreciate that although social media
offers an excellent way to connect with customers on an
immediate basis, the communication which takes place via
social media must support existing marketing messages and
brand positioning [29]. Customers expect a seamless
experience regardless of whichever channel and format an
organization uses to communicate, which is why any social
media marketing strategy must be seamlessly integrated into
existing marketing approaches in order to provide a cohesive
marketing experience.
II. THE GROWTH OF E-MARKETING
E-marketing, and in particular social media, have become a
staple of marketing strategies for many organizations as they
strive to promote their products and services and to raise brand
awareness in competitive marketplaces [27]. Until relatively
recently, organizations utilized classic marketing principles of
narrowly defining a target market and then utilizing direct and
indirect marketing tools in order to attract and retain customers
and grow market share [46]. However, the social media
revolution facilitated entirely by technological development
has meant that e-marketing strategies are now regarded as the
best practice in marketing circles [9]. Reasons for this include
the flexibility and responsiveness of e-marketing, as well as its
cost effectiveness and ability to track and monitor consumer
behavior. Furthermore, word-of-mouth (WOM)
recommendation, widely acknowledged as one of the most
powerful marketing tools translates particularly well to a
social media environment [46]. Its implications are that e-
marketing, and in particular social media marketing, are
rapidly overtaking classical marketing techniques. In support
of this, Hajipour et al. [32] reveal that improvements in
technology and software also mean that businesses can use
social media in particular to develop bespoke and highly
defined marketing strategies which deliver a much better
returns on investment and higher levels of customer
conversion.
WOM recommendation (referred to as e-WOM in an online
environment), leading to product and service referral is the
most powerful and effective form of marketing [43]. They
further explain that when a product or service is highly
personalized or expensive then it is increasingly likely that
customers will try to obtain a recommendation either from
friends and family, or other people within their social network
before purchasing. Obviously social media platforms present
an excellent opportunity for existing customers to write
referrals and recommendations, and organizations can use this
to their advantage. Not only do social media platforms allow a
business to create a brand personality, they can also be used to
encourage customers to share recommendations thus spread
the word about an organization, thereby helping brand
awareness [59]. Another benefit of e-marketing is that it can
be used to form the foundation of effective CRM, because of
business can use the information gathered from online
interactions to build up a detailed picture of customer behavior
[44]. This information can be used to help develop enhanced
products and services, and also to create personalized
opportunities for customers to strengthen levels of customer
loyalty. The greater the level of detail about the customer, the
easier it is to create highly focused and thus more successful
marketing strategies which appeal directly to the target market
and the wants and needs of consumers [44], [37]. Social
media marketing in particular facilitates near instantaneous
communication which simulates the way in which people
would interact on a day-to-day basis. This strengthens the
perception of brand personality is one of the fundamental
aspects of success within e-marketing, leading to long-lasting
and robust customer relationships [59].
Despite the wide application of e-marketing techniques,
specific products and services benefit from differentiated
approaches to social media marketing [33]. Furthermore, it is
important to take account of cultural context as this is an
influencing factor when determining not only the type and
format of e-marketing, but also its content [12]. It is not safe to
presume that marketing messages which work effectively in
one particular context will necessarily translate to another [37].
To further complicate the role of e-marketing, customers now
expect a seamless marketing experience meaning that
whichever mode of communication they choose to utilize, they
expect an organization to present a unified message [29]. For
example, in a retail context a customer would expect the same
level of service and communication regardless of whether they
purchased online or in-store. Many businesses failed to
appreciate this important factor, and thus are missing an
opportunity in regards to utilizing e-marketing and social media
communication [29]. Ultimately, consumers anticipate and
demand a unified and seamless communication and marketing
experience which is why adoption of any e-mail marketing
techniques must be fully incorporated into any existing
business or marketing strategies. Moreover, to be effective the
marketing messages must be consistent with the brand
positioning and consumer expectation within the context of the
industry sector and its cultural setting [36].
III. ISLAMIC MARKETING
Hafiz [31] explains that Islamic marketing represents an
emergent academic discipline which amalgamates
contemporary best practices in marketing theory, with the
beliefs and requirements of Islam. This generates a number of
interesting issues, not least of which because marketing as an
industry sector has a reputation for exaggeration [46], as well
as an increasing desire to shock a target market through
contentious marketing practices and communications [43].
Neither exaggeration nor contentious behavior sits comfortably
with the fundamental tenets of Islam, meaning that those
organizations and marketing practitioners who wish to market

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International Conference on Innovative Trends in Science, Engineering and Management (ITICSEM 2014), Dubai, UAE Page 3
businesses successfully within Islamic cultural contexts must
tread a careful path between the recommendations of marketing
best practices and the social and cultural requirements of Islam.
It is this which has given rise to the emergence of Islamic
marketing which strives to help bridge the gap between the two
bodies of knowledge. This has been achieved with some degree
of success, because acknowledging the differences is a major
step towards reaching an appropriate compromise [4].
However, it is also acknowledged that there is still a huge
amount of research and work to be done. The cultural setting of
this particular research study, therefore, demands inclusion of
Islamic marketing principles, which, it is anticipated, will form
the foundation of any future marketing strategy.
IV. E-MARKETING APPROACHES
In order for organizations to attract customers, it is
necessary for them to market their products and services to
raise awareness of their activity, and to promote their position
in the marketplace [43]. Marketing is not a modern concept;
however, Ahearne et al. [2] reveal that if organizations are to
remain at the forefront of their industry sector, they must
continually evolve and develop their marketing strategy and
messages in order to demonstrate to their customers, and
indeed the wider marketplace, that they are growing as a
business. In recent years, technology has facilitated the rise of
“e-marketing”. This term specifically refers to the use of
electronic methods of communication in order to market a
business, such as websites, e-mails, social media platforms,
and pop-up banners [14]. These represent just some generic
examples of how a business can engage in e-marketing,
although Best [11] points out that increasingly, organizations
are developing innovative means of using technology to
communicate directly and indirectly with customers, and these
methods also fall within the remit of e-marketing strategies.
This literature review begins with a discussion as to a
formulated definition of e-marketing, and then moves on to
consider alternative formats of e-marketing and their specific
issues and challenges. The discussion also considers the
issues associated with e-marketing in the financial sector,
which are specific because of the nature of the products and
services which the financial sector offers, as well as consumer
tendencies of loyalty due to inertia [19]. The literature review
also considers some of the specific considerations associated
with marketing Islamic banking and Islamic marketing as this
has very explicit requirements [3], [27]. Finally, all of these
considerations are brought together in a conceptual framework
which will be tested through the course of the primary data
analysis and interpretation.
A. Definition of Term: E-Marketing
Aaker and Mcloughlin [1 p.202] assert that e-marketing is
only distinguishable from traditional marketing in its medium
of communication, and therefore they believe that e-marketing
can be defined as "the delivery of promotional messages using
the internet”. They argue that at a fundamental level e-mail is
no different from classical marketing other than the use of
technology. Strauss et al. [62 p.37] support this basic
perspective, but extend the definition to suggest that e-
marketing incorporates "advertising and marketing efforts to
direct sales from e-commerce activity”. They go on to explain
that e-commerce can include websites, e-mails, and social
media platforms. Solis [59] argues that the use of social media
as a marketing tool is considerably more recent, and is more
commonly used as a specific form of word-of-mouth (WOM)
advertising. Referring to it as e-WOM, to identify its
communication via online sources, Brynley-Jones [16]
highlights that social media in particular is a specific means of
e-marketing which not only has the benefits associated with
WOM recommendation, but acts more quickly, and because of
technology and software development, enables an organization
to track and monitor how successful or otherwise any online
marketing campaigns may have been. Thus, it can be
suggested that whilst there are subtle differentiations which
expand the definition of e-marketing, these relate to the specific
modes of e-marketing as opposed to its fundamental use within
the business. Therefore, for the purposes of this study, the
definition of e-marketing will be taken to be that initially
proposed by Aaker and Mcloughlin [1 p.202].
B. Types of E-Marketing
Drilling down into the detail of e-marketing, contemporary
practitioners suggest that there are four especially popular and
effective formats of e-marketing. These are social media
platforms such as Facebook, YouTube, and Twitter; pop-up
and banner advertising, e-mail marketing and the use of
interactive communication via websites such as QR-codes.
This section of the literature review will consider the specifics
of each of these approaches.
1) Social Media Platforms
As a result of technological and software development in
conjunction with societal change, social media platforms have
become a hugely popular means of communication and
interaction [17]. For good or for bad, social media platforms
are heavily utilized by consumers as evidenced by the
exponential growth of large-scale social media platforms such
as Facebook and YouTube, and the rising use of social media
platforms by organizations as a means of increasing brand
awareness and communicating directly with target consumers.
Hoffman and Fodor [35] explain that social media platforms
have a number of benefits over other forms of e-marketing.
These include the ability to target consumers with a reasonable
degree of precision based on the behavior of social networks.
Healy and McDonagh [33] also assert that social media
platforms are the best way of delivering e-WOM
recommendations, as social groups can see the behavior of
their friends, and respond accordingly to the
recommendations. Kaplan and Haenlein [40] indicate that
there is no more powerful form of marketing than a
recommendation, which is why social media platforms which
can be used on a near instantaneous basis to spread the word

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quickly and effectively are an extremely powerful tool in a
marketing strategy.
Hirschman [34] also indicates that social media platforms
can be used to raise brand awareness and generate brand value.
Branding is itself a distinct branch of marketing (and indeed a
distinct area of academic research), and social media platforms
which allow consumers to discuss their perceptions of a
product or service help to generate a "buzz" about a brand by
raising awareness. The greater the level of awareness, the
greater the brand value which creates a snowball effect
amongst the target market. Canniford [18] also believes that
branding and social media work, particularly effective because
of the influence of "consumer tribes". Goulding et al. [28]
have identified consumer tribe behavior as consumers who
share similar tastes and opinions group together.
The implications for marketing are that if it is possible to
gain brand traction amongst a consumer tribe in the social
media context, this will of itself generate much greater
awareness and brand value. As of yet there is little definitive
research which identifies whether or not consumers attracted
via social media are more loyal, but certainly technology
makes it easier for organizations to track consumer trends and
preferences [59].
2) Pop-up and Banner Advertising
Pop-up and banner advertising is specifically associated
with websites and internet searches. As the term suggests, pop-
up adverts appear in the middle of webpages, and banner
advertising is to the side, top or bottom of websites. Pop-up
banner advertising is now also commonly associated with
mobile devices such as tablets and smart phones when
consumers download as apps [8]. Pop-up and banner
advertising is typically sponsored, into far as the organizations
placing adverts there operate on a Pay per Click (PPC) basis
every time a consumer clicks through on the link or advert.
Organizations responsible for managing this format of
advertising argue that it is a highly convective conversion rate
based on “click-throughs”, although Li et al. [51] challenge
this suggesting that simply because someone has clicked on an
advert, it does not mean that they have been converted to the
product as quite commonly clicking on such a banner
advertisement is inadvertent. Moreover, Becerra and
Korgaonkar [8] challenge the presumed popularity and
effectiveness of pop-up and banner advertising, revealing that
many consumers find it to be particularly irritating.
More recently, developments in software allowed
organizations to utilize the tracking of "cookies" which are
specific reference to Internet searches [26]. Now
organizations are able to capture and analyze this data in order
to build up a picture of consumer behavior. It allows them to
link adverts together in such a way that can be utilized in
targeted pop-up and banner advertising which is becoming a
commonplace nowadays [63]. For example, consumers who
may have recently performed a generic internet search for
“banks” may then find themselves viewing pop-up and banner
advertising for particular banks who engage in this form of
marketing. Again, more research is required to establish
whether this targeted approach utilizing cookies helps to
increase the level of customer engagement rather than
irritating customers and causing them to switch off.
3) E-mail Advertising
Direct e-mail marketing is considered by some marketers to
be "old-fashioned" [17], although this does not diminish the
popularity and volume of e-mail traffic containing advertising
and marketing materials. Again, as the term suggests e-mail
advertising is the practice of sending direct marketing
communications to individual e-mails. It often takes the form
of e-mail newsletters and flash advertising [47]. Michaelidou
et al. [54] argues that for smaller or growing businesses, e-
mail marketing is a cost-effective means of communicating
with a large potential customer base on the basis that there is
the ability to advertise new products and services to existing
clients, and also to track levels of conversion and effectiveness
of advertising in this manner. Whilst consumers will often
consent to or sign up for e-mail marketing inadvertently,
Okazaki and Taylor [56] reveal that, much like pop-up and
banner advertising, increasingly consumers are finding this
mode of e-marketing to be intrusive. Unscrupulous
organizations have been known to sell on their lists of e-mail
addresses, and there is also an increasing problem of fraud via
e-mail with naive consumers being unaware of the risks
associated with opening spam e-mails containing viruses [51].
As consumers become more aware of these problems, Okazaki
and Taylor [56] believe that the popularity of e-mail marketing
is likely to decline, especially amongst more technologically
savvy consumers who prefer other forms of communication.
4) QR-Codes
QR-Codes is becoming an increasingly popular mode of e-
marketing. QR-Codes are randomly generated binary images
which can be scanned by a QR-code reader (typically a piece
of software which can be downloaded as an app), which then
takes the consumer straight to a particular web page [65].
These are popularly used by organizations as a means of
generating awareness of unique products for special events,
and a form of guerrilla marketing [21 p.1]. Popular amongst
consumers because of the novelty value, they are also popular
with organizations because they allow a very specific level of
tracking of consumer behavior, and they are also found to
attract high level of consumer conversion [65]. Consumers
who are interested enough to scan the code are also likely to
engage more with the organization and act upon the
information contained in the webpage. A further benefit of
QR-codes is that they can work well with mobile devices,
making them more popular with younger consumers who
make greater use of mobile devices in order to interact and
communicate [58].
Atkinson [6] has found examples of organizations utilizing
QR-codes in conjunction with social media platforms,
particularly YouTube and Facebook, to raise awareness of
competitions, events and promotions. Often QR-codes have

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International Conference on Innovative Trends in Science, Engineering and Management (ITICSEM 2014), Dubai, UAE Page 5
been used as a means of raising awareness of pop-up venues
which have become increasingly utilized as a means of raising
brand awareness and testing the viability of a product or
service in a specific geographic marketplace. The transient
nature of QR-codes aligns neatly with the transient nature of
pop-up venues, and although such pop-up opportunities tend to
be used by more fashion conscious organizations, Berger [10]
has found evidence of professional services organizations
utilizing the approach at events and exhibitions. Lee [49]
argues that potentially this has implications for financial
services firms wishing to attract a new generation of customers
with targeted products and services.
5) Google AdSense and Google Endorsement
Google has rapidly become recognized as the leading
Internet search engine (ISE). Sparrow et al. [60] reveal that
only 10 to 15% of people look beyond the first page of a
Google search, and therefore utilizing tools such as Google
AdSense and Google Endorsement can promote search
rankings and the popularity of a website. Google AdSense is a
means of providing and promoting targeted advertising and
marketing content, based on the history of the user [50]. This
history is identified via cookies, which track user activity, and
allow those organizations who have utilized Google AdSense
to ensure that their marketing message is reaching the right
target audience. Vegh [64] explains that AdSense can take
several forms, including content, search related, and domain
rated links, depending upon what it is that a consumer is
searching for. Therefore, careful use of AdSense with
keywords can help to promote an organization in an online
marketplace.
Google Endorsement is a Google sponsored platform for
promoting and sharing personalized endorsements. Marketers
have long known that personal word-of-mouth
recommendation is one of the most powerful forms of
advertising [30]. Moreover, social media accelerates the trend,
in a concept known as e-WOM [30]. Google Endorsement is
one example of this, as Google allows users to share their
opinions and perceptions of products and services. Given that
financial services require a high degree of trust between the
service provider and the customer, utilizing Google
endorsement as a form of e-WOM can be especially helpful
[61].
6) Search Engine Optimization (SEO)
Dwyer [22] explains that Search Engine Optimization (SEO)
is a concept which has rapidly become recognized as vital in
any online marketing campaign. The research of Sparrow et
al. [60] revealed that only a small proportion of internet users
would look beyond the first page of a Google search, and
therefore it is vital that an organization takes the necessary
steps to promote their websites and online advertising in order
to position it as high as possible on a Google search [67]. It is
estimated by Internet World Statistics [38] that the internet is
used by over 2.4billion people on a daily basis, and promoting
an organization’s webpage or advertisements such that they
rank on the first page of a Google search is widely proven to
be a beneficial means of promoting organizational awareness
[67]. Therefore, engaging in the practice of SEO has sound
business principles.
As software has become more sophisticated, and Google
has become aware of crude attempts to promote websites
through heavy use of keywords, Google has sought to improve
the filters which promote a website based on the actual number
of clicks-through from users [7], [67]. Thus, although keywords
are important, it is also necessary to ensure that the content of
the website encourages traffic. Potts [57] indicates that this can
be achieved through using media content such as videos and
photos, and also linking websites to other forms of online
communication such as social media feeds. Understandably, it
is necessary to have a cohesive online marketing approach
which draws together all of the online content and helps
promote the ranking of a website on a Google search. Chung
[20] also urges caution with firms who assert that they can
promote SEO, as Google are constantly refining the
sophistication of their search engines based on natural searches
which mimic human behavior, and not attempts to manipulate
SEO rankings using software programs. This is why content
across all online platforms is medically important to promote
reliable SEO.
C. Marketing Management Information Systems (MMIS)
According to Kotler and Keller [46], a Marketing
Management Information System (MMIS) is a means of
bringing together the benefits of technology and organizational
information, and using this to identify customer habits and
trends, in order to refine a target market. As customers utilize
online communication channels with increasing frequency, it
becomes easier to track and monitor consumer behavior and
trends which an organization can then use to anticipate likely
consumer behavior [27]. Moreover, as a new generation of
customers comes forward who have been brought up with
technology and online communications platforms, it is prudent
for an organization such as the KIB to ensure that they have
marketing communications in place which new customers will
feel comfortable and confident with. This is especially
important when dealing with personal finances, as this requires
an enormous level of trust between an organization and a
consumer, and the need to build a close relationship whereby a
consumer feels that their bank understands their needs [61].
Kotler and Keller [46], assert that an MMIS is the most
appropriate way for a marketing department to ensure that
their marketing communications and content accurately
reflects the products and services an organization wishes to
promote, and also reflects the current and future potential
needs of customers. By communicating regularly and
frequently with customers this is an ideal way to monitor the
behavior of the marketplace, and to partially deduce the
behavior of competitors based on the responses of customers.
Steyn et al. [61] indicate that with financial services in

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particular, many customers have a degree of inertia and it can
be extremely difficult to encourage switching behavior.
Therefore, using an MMIS to accurately position an
organization to appeal to a target market can help to facilitate
such activity.
Laudon and Laudon [48] reveal that an MMIS should be an
integrated and holistic approach, which draws upon
organizational behavior from multiple areas of the business
including operations, HR, finance, and marketing. This is to
illustrate on an internal basis how the activities of different
parts of the organization affect organizational success in the
marketplace. For example, front facing marketers and customer
service representatives are likely to face criticism if operational
departments are not providing the products and services as
promised. This is why utilizing a bespoke MMIS with internal
metrics can help to provide meaningful organizational targets
which monitor the success of marketing communications and
advertising campaigns. Kotler and Keller [46] believe that the
key to successful MMIS is regular monitoring and
disseminating the findings from information digestive from the
MMIS so that employees in different departments can react
appropriately. For the KIB, an MMIS would be especially
useful tool to synchronize the activities of different
departments so that they provide a seamless customer
experience.
D. E-Marketing in the Financial Sector
There are specific issues associated with marketing in the
financial sector, and although financial organizations share
many of the challenges common to other businesses and
industries such as raising brand awareness, they also face
specific issues because the nature of the products and services
that they offer [69]. Many financial services firms remain
unaware of the potential associated with e-marketing, and as a
result, they lack the necessary resources and experience to
market successfully using electronic communication channels
[69]. Financial institutions frequently fail to think laterally in
their marketing approach and remain narrowly focused
meaning that they inadvertently alienate large proportions of
the future target market [23]. In order to improve the brand
image of financial organizations and attract future generations
of loyal customers, the financial sector as a whole must
reconsider its image and how it chooses to position itself in the
future [23].
1) Benefits and Opportunities
Epstein and Crotty [24] adopt a different perspective to
many of their contemporaries, suggesting that the relative
immaturity of E-marketing in the financial sector represents
both a benefit and an opportunity to those firms who are
prepared to engage with this mode of marketing. They believe
that not only will they attract benefits associated with early
entry; they can also use the early entry as an opportunity to
position themselves differently from their competitors with
brand personality and value. Taking into account the previous
research and the importance of brand for many contemporary
organizations, this is an opportunity not to be missed by
financial services businesses seeking to attract a new
generation of customers [25]. Not only that, despite the tight
restrictions associated with the financial sector, such is the
image of banking that it would only require a relatively small
innovation in marketing strategy for financial services
provider to be highly differentiated.
Another practical benefit which financial organizations have
compared to many other industry sectors is that they have
greater financial resources which they can invest in their
marketing strategy [66]. This means that they can draw upon
best in class examples of social media marketing to
communicate effectively with customers. One of the
fundamental reasons for e-mail marketing is that it allows an
organization to gather data from multiple channels in order to
provide a seamless experience for consumers so that
customers can switch from one communication mode to
another with no disruption in service. In light of the growth of
mobile technology, offering mobile platforms for interacting
with financial service providers represents a huge growth
opportunity [13].
2) Challenges
Although there are several benefits and opportunities
available to financial services providers in terms of e-
marketing, they face a greater number of challenges [53]. The
first of these relates to the relative lack of awareness, resources
and knowledge in respect of successful e-marketing amongst
financial services institutions. Until relatively recently the
financial services sector could be regarded as stable, and the
practical requirement for day-to-day banking and financial
facilities means that consumers typically regard financial
services as a utility as opposed to a product or service [23].
From a marketing perspective, this creates a challenge because
it means that consumers view their financial services and
products in a different way and they are less inclined to engage
with financial service providers because they are a necessity as
opposed to a matter of choice. Whilst this can be regarded as
an opportunity because there is consistent market demand, the
reality of human behavior such that consumers demonstrate
inertia with regard to financial products and this engenders a
high level of what appears to be customer loyalty. Brush et al.
[15] reveal that many consumers simply consider switching
financial service providers to be too difficult, and so they
remain with their initial provider but they are not in fact loyal.
They merely remain with the provider because it is the lesser
of two evils. Karimii, et al. [41] have stated that this has the
potential to be extremely damaging for financial services
organizations because such customers – who would be
considered under ordinarily marketing principles be loyal
brand ambassadors – are in fact undermining the
organization's chances in obtaining potential new customers.
The result from an organizational perspective is that these
financial institutions have a huge amount of work to do in
terms of improving their brand image and reaching out to new

International Journal of Emerging Technology and Advanced Engineering
Website: www.ijetae.com (ISSN 2250-2459, ISO 9001:2008 Certified Journal, Volume 4, Special Issue 2, February 2014)
International Conference on Innovative Trends in Science, Engineering and Management (ITICSEM 2014), Dubai, UAE Page 7
consumers who will remain genuinely loyal to their financial
services provider.
Many banks face technical challenges with regard to
integrating their services and marketing offerings [42]. As
previously noted, consumers expect a seamless experience
regardless of how they choose to interact with their service
provider, and it seems that many banks fail to appreciate the
importance of this. Kaur et al. [42] also believe that in their
haste to adopt contemporary marketing practices, a number of
financial institutions are embracing a scattergun approach to e-
marketing which is actually undermining their brand and their
marketing message. Amin et al. [4] explain that because of
the nature of financial services and products not all marketing
techniques are appropriate and therefore financial institutions
should think carefully about their desired target market and the
message they wish to betray before they adopt some more
informal approaches to marketing. From an organizational
perspective, those financial businesses unaware of the
potential problems of using inappropriate marketing may well
find themselves at risk. This is why Wright and Watkins [69
p.69] advise to utilize the specialist knowledge in establishing
fundamental principles of e-marketing, before “trying to get
clever” by employing innovative marketing approaches.
3) Specific Consideration for Islamic Banking
Islamic banking is firmly guided by legal, religious and
social conventions, meaning that when applying broader
principles of marketing and e-marketing it is necessary to take
these conventions into account [4]. For example, Amin [3]
has observed that there are some potential challenges with
regard to the legality of e-business from the perspective of
Islamic law. He states that "e-business is a permissible means
of doing business provided it is performed in the boundary of
Shariah Islamiyyah” [3 p.1]. The practicalities of this are that
e-business must be devoid of any form of deceit, and indeed
any form of excessive financial risk which is expressly
prohibited under the principles of Islamic banking.
Unfortunately, marketing as an industry suffers from a
reputation for making “exaggerated or contentious claims” [45
p.244], and this immediately sits at odds with the need for
Shariah compliant business to be entirely transparent.
Muhammed et al. [55 p. 1] also highlight the possible risks
associated with Shariah compliance, such as online marketing
campaigns which require consumers to utilize credit cards that
is considered as an obvious violation amongst Shariah
compliant business practices. Credit cards are obviously a
product offered by financial services provider such as banks,
and in many instances have been used as a means to strengthen
consumer loyalty, obtain more information about consumer
behavior, and also encourage consumers to spend money that
they do not have [52]. All of these principles would sit
uncomfortably with Shariah requirements.
Wilson [68 p.5] indicates that there is a growing body of
research which focuses specifically upon "Islamic marketing",
which is described as the need to adopt Islamic principles
within fundamental marketing approaches. Arham [5 p.149]
states that "though not all of its elements could be applied in
Islamic society, modern marketing theory will provide some
elements which can be utilized in developing Islamic
marketing”. Hafiz [31] warns against the risk of manipulating
classical marketing principles in order to make them compliant
with the principles of Islam, without fully considering the
implications of doing so. He explains that before it is possible
to develop appropriate Islamic marketing techniques which are
both effective and compliant, it is first necessary to understand
the principal drivers. He states that “… the danger here is that
we may end up making an ends seemingly “halal” by making
the means halal”, which is an analogy for ensuring that any
Islamic marketing practices take the best of both worlds. That
is to say, they utilize the experience of classic marketing
principles, whilst incorporating the required elements of
Islamic law in order to develop a modern solution to an
evolving marketplace. Jafari [39] concurs with this and
believes that by bringing together the two perspectives, it is
entirely possible to forge a new area of marketing research
which crosses these cultural boundaries.
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