Cases in Strategic Marketing Management: Business Strategies in Muslim Countries

Citation

Shuayto, N. (2010), "Cases in Strategic Marketing Management: Business Strategies in Muslim Countries", Journal of Islamic Marketing, Vol. 1 No. 3, pp. 305-308. https://doi.org/10.1108/17590831011082455

Marketing guru John Quelch offers insights into the business practices of Muslim countries and discusses the challenges and opportunities western companies can expect to encounter when considering these countries for international expansion. Grounded in current research in the international marketing management field and coupled with relevant case studies, the book is suitable for use in business education, particularly executive management programs, and serves as a guide for multinational firms seeking a better understanding of the challenges and opportunities in Muslim countries.

The book opens with an introductory chapter highlighting the importance of Muslim countries to western companies and Muslim countries represent a huge untapped market for those wishing to expand their business internationally. It includes a discussion on the reasons for avoidance of marketing in the Middle East by western multinationals.

More specifically, the opening chapter covers religion and society, negotiating and selling, adapting the marketing program, and finally, organization and management. Western companies wanting to conduct business in these countries need to comply with Islamic principles, which ban gambling, the drinking of alcohol, eating of pork, and prostitution.

The remainder of the book is organized around the various elements of strategic marketing management such as penetrating an emerging market, planning a joint venture and achieving international expansion. Each chapter is then supplemented with a case study to link the theory with the practice. Chapter six, for example, is about developing the marketing plan and Gillette is a case‐in‐point included to highlight their experience in Indonesia.

The author's opening paragraph captures the reader's attention with powerful statistics claiming by 2025, 30 per cent of the world's population will be Muslim and 60 per cent of them will be under the age of 18. The intentions here are simply to send a message to western companies indicating there is potential in these markets and multinationals should focus on these markets if they want to expand their international presence and increase their market share.

The author proposed three possible reasons behind the lack of interest in these countries: cultural distance, threat of terrorism, and the fact that many Muslims have not quite recovered from being under western rule. Quelch does a wonderful job highlighting the important elements needing special consideration, one being the full understanding of Islam as well as the culture and political structure making this market one of interest. One important item in the introduction deserving mention is the author's point; “it is unfair to describe the United States as a violent society, based on the acts of a few well‐publicized gunmen, as is to dismiss all Muslims as terrorists.”

In addition, Muslim countries should not be treated as a homogenous market. They are quite different in cultural values, consumer behaviors, and marketing practices, just as they are in Christian societies. The absence of a core country in the Muslim world makes Islam harder for outsiders to understand.

Given Quelch's extensive research and knowledge in global marketing management and Middle Eastern studies, he highlights the dramatic differences in stages of economic development between oil‐rich Muslim countries such as the United Arab Emirates (UAE), with a per capita income among the world's top ten, and neighboring Yemen, among the world's poorest. He goes on to give examples of the unresolved rivalries and border disputes between Egypt and Sudan as well as Iran and Syria.

The author presented examples of the strict rules on allowing women to drive and work. He also provided examples of women not being allowed to go out in public without company and are banned from working. Readers should, however, be advised that not all Muslim countries have the strict rules typical in Saudi Arabia. Each country represents its own unique set of challenges and opportunities just as they do in any other part of the world. For example, in most Muslim countries, women drive, go out in public alone and work outside the house. As cited in the book, Pakistan, Bangladesh, and Turkey have all had female prime ministers.

Quelch makes it quite clear the women in Muslim countries are fond of fashion, cosmetics, and other products just as much as women are in western societies. He goes on to indicate the western brands of cosmetics are well known, used and discussed at social get‐togethers, which are typically hosted by women in their homes. The author gives advice to the reader noting a good salesperson should know that in Muslim societies, hospitality offered must be accepted. When visiting a home, a gift is appropriate.

Another important section of the book focuses on negotiating and selling in Muslim societies. The main point raised in this section is, “personal trust is more important than any written contract. Trust is hard to establish.” He goes on to explain:

The conversation in a good sales call will often focus on social issues and the prospective customer's hobbies. The decision process is lengthy but, once made, the switching costs are high. For the multinational company, an ideal salesperson is an expatriate who speaks Arabic and who has infinite patience.

The section ends with more examples of business customs, traditions and hospitality rules in Muslim societies.

The book then goes on to describe the adaptation of the marketing program with specific examples of adapting the marketing mix variables: product, price, place and promotion policies. The author notes, “the same marketing principles apply in Muslim countries that apply in Western societies. However, cultural differences require adaptations to the marketing approaches used by Western companies.”

When discussing product policy, the author indicates in Muslim countries there is an inherent belief that western‐made brands are superior in quality compared to local equivalents. In addition, the status of owning and using western brands is also evident. However, some western brands are rejected in some societies, but overall, assuming package labeling is adapted to local language and content requirements, most western brands are well received.

The book sites some other issues having an impact on product strategy such as intellectual property laws, avoiding the use of any pork‐based additives in their manufacturing processes, and the ban of all alcohol.

The author contends:

Western salespeople sometimes complain about a high degree of price sensitivity and an apparent unwillingness to appreciate superior quality and value‐added services. This is often a reflection of a lack of trust on the part of the buyer. Many Western salespeople are inclined to give up too soon rather than patiently educating the prospect through a series of meetings to understand why a higher price is fair.

It is difficult to use a single advertising campaign given the cultural nuances in Muslim countries. However, advertising in print and electronic media is available. The book illustrates the effective use of advertising, direct mail, sales promotion and in‐home parties in Muslim societies like Saudi Arabia. For example, women are restricted in public, direct mail is relatively underdeveloped and, therefore, the response rate in countries like Saudi Arabia can be surprisingly high.

As for distribution policy:

[…] restrictions on foreign ownership, the perceived risk of investment, cultural complexities, and modest market potential have resulted in many multinationals electing to serve Muslim markets through local agents and distributors, often associated with prominent families and appointed on an exclusive basis. Such arrangement sometimes results in mutually beneficial long‐term relationships.

The author gives an example of Kodak and McDonald's in Saudi Arabia.

The remainder of the book is a series of very interesting case studies of how western companies like Disney and Gillette have conducted business in places like Lebanon and Indonesia. There are additional cases from other Muslim countries such as Hikma, a Jordanian pharmaceutical company, Sadafco, a Saudi food conglomerate, and Arcelik, a major appliance company in Turkey.

The book is truly unique and one‐of‐a‐kind offering the reader a very good overview of the marketing opportunities in Muslim countries. Quelch is a well‐known and respected author and academic. He is an international marketing guru with hundreds of articles and books on the subject.

What makes this book unique is the combination of cases used. These cases provide the reader with several examples of both western and Middle Eastern companies succeeding in a world, which is not completely understood by western multinationals. Quelch clears up a few misconceptions and provides insight on the cultural, economic, and political factors affecting Muslim countries.

In his book, Quelch uses Saudi Arabia many times to illustrate examples of the cultural barriers facing multinationals and offers practical advice on how to adapt the marketing strategy in that country. The reader should be advised, however, that Saudi Arabia is unique and does not represent the majority of Muslim countries. In addition, Muslim societies are not limited solely to the Middle East. For example, Indonesia, the most populated Muslim country, is located in Asia along with Malaysia and Bangladesh.

The reader may have the wrong impression and generalize the findings to all Muslim countries, which would be a mistake. For example, he mentions women are not allowed to drive or go out in public alone. This may be the case for Saudi Arabia, but does not hold true for women living in countries like Lebanon, Egypt and the UAE. As previously mentioned, women in these countries drive, go out in public unattended and work outside their homes. More importantly, they make decisions in the marketplace making them an important market in which multinational companies cannot and should not ignore.

The opening chapter of the books is simply brilliant. Quelch summarizes the important issues Western companies need to be aware of as far as the environmental factors, which may have an impact on the overall marketing strategy. The examples used are clear, simple and easy to understand. It is a must read for any student studying international marketing and any firm looking for international expansion opportunities.

One recurring criticism in management education in Muslim countries is instructors use too many western cases in their classes. This is true given the lack of case studies published on companies in the Middle East. This may have to do with the fact many of these companies are not willing to share information relating to their organizational strategies. This lack of transparency goes back to what Quelch indicated in his book concerning the lack of trust on the part of the managers in Muslim countries. They are not willing to share information they may perceive as confidential. This will hopefully change as companies realize having a case written about them is actually a good thing and helps them build their brand. In addition, it gives outsiders the opportunity to see there are many successful companies operating in Muslim countries. This will encourage more foreign investment, which will lead to economic development.

Although the book was published in 2001, most of the theoretical concepts still apply today. The cases used are an excellent combination and represent a nice spectrum of issues facing managers working in Muslim countries. The book is compact for easy reading and offers the reader the knowledge and insight for effective business strategy development. The cases should be updated and perhaps it is time for a new edition.

Cases are an excellent tool for linking the theory with the practice, but at some point in time, the issues become irrelevant particularly during a time when the world is changing very quickly, even in Muslim countries.

Nadia Shuayto

Lawrence Technological University, Southfield, Michigan, USA