Islamic Marketing: Value Differentiation or a Segmentation Strategy for Muslim Consumers? A Critical Literature Review

Abstract

The growth of the Muslim population, rising purchasing power, expansion of the halal industry, and increasing awareness of religiously compliant products have positioned Muslim consumers as an important segment of the global market. These developments have encouraged companies to adopt marketing strategies targeting Muslims through halal products, Islamic branding, religious communication, and identity-based differentiation. However, they also raise a critical question: does Islamic marketing represent a value-differentiation paradigm grounded in Islamic principles, or merely a market segmentation strategy based on Muslim identity? This article critically examines the conceptual development of Islamic marketing and distinguishes marketing directed toward Muslim consumers from marketing genuinely grounded in Islamic values. The study employs a qualitative approach through a critical literature review of research on Islamic marketing, halal marketing, Muslim consumer behavior, market segmentation, Islamic business ethics, maqashid al-shariah, value creation, and corporate social responsibility. The findings reveal a tendency to reduce Islamic marketing to halal attributes, religious symbols, and narratives. Nevertheless, Islamic marketing has the potential to become a substantive value-differentiation paradigm when justice, honesty, trustworthiness, transparency, maslahah, and social responsibility are embedded throughout the marketing process. Muslim consumer segmentation is therefore relevant but insufficient to define Islamic marketing. Its development should move from marketing to Muslims toward marketing through Islamic values, and from sharia compliance toward sharia impact.