Impact of New Media on Brand Marketing and Profit Margin

This paper discusses the impact of social media on generating brand equity, brand marketing and profit margin of different small and large brands. It also discusses the advantages and disadvantages of social media marketing of any luxury and food producing brands.

Running head: IMPACT OF NEW MEDIA
IMPACT OF NEW MEDIA
Name of the Student
Name of the University
Author Note

1IMPACT OF NEW MEDIA
Introduction
With the growing changes in the advancement of science and technology, the concept of
marketing is altering or changing in the rapid rate. Social media has considered as the subgroup
or division of new media. This media has immense impact of the marketing of both small and
large- scale business industry. In the era of 21st century, social media has become an integral part
in generating brand awareness, customer recognition and brand marketing. This paper aims to
produce a brief idea about the impact of social media on generating brand equity, brand
marketing and profit margin of different small and large brand like Coca- Cola, Lays, GUCCI,
and other similar luxury brands. This paper also discuss about different advantages and
disadvantages of social media marketing of any luxury and food producing brands. This essay
further discusses six articles to determine the actual impact of social media on generating
consumer awareness, brand position and marketing of different luxury and small companies or
brands.
Discussion
Social media marketing (SMM) has positive impact on brand marketing of different
luxury brands like GUCCI, Dior, Burberry and other similar organizations(Godey et al., 2016).
Social media has considered as the major tool for creating brand marketing and it helps in
developing awareness of different luxury brands because it develops a wide range of interactive
channels. It promotes new ideas or innovative marketing concepts of different companies.
Luxury brands has benefited by the connectivity established by the social media as it helps the
company to advertise their brands to wide number of consumers present across the globe. Social
media has feature with different advantages like, it helps to promote any brand through

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advertising several new ideas or concept adopted by that brand. This media helps in directly
evaluating customer feedbacks of different luxury brands like GUCCI, Dior, Burberry and other
similar brands and helps them to analyze their strengths and weaknesses and provide a path to
recognize their loopholes and improve their quality, even they launch their new items and
promote exclusive offers on this media. In this way, any company should able to generate their
profit margin simply by satisfying the emerging demands or requirements of wide range of
consumers. Entertainment is one of the important aspects of social media marketing. Through
social media, any luxury or small brand have able the scope of attracting wide range of
consumers by generating eye- catching headlines and promote exciting offers that would seek
customer’s attention. Thus, it will help the brand to attract buyers by compelling them to choose
their firm and helps the company to enhance their profit level. Beside, all the advantages, social
media has several drawbacks that may affect any brand badly. However, social media has the
feature of connecting wide range of purchasers present across the globe, and may hamper the
good reputation of any company within few hours if any consumer has recognized any issues.
Thus, considering all advantages and disadvantages it can state that social media has positive
impact on developing awareness, brand marketing of any luxury brand. It also helps in
generating profit margin of the organization.
New media has emerged as the major threat on children’s health. Beside, several positive
impacts of social media in generating brand equity of any firm, it has adverse impact on the
children health. Digital media like television has become the major advertising tool for the food
industry (Kelly et al.,2015). Companies that manufacture different fast foods has seemed to
utilize television as the main media of promoting their brand or items. Through ages, it has
observed that children became the main target of this industry. Different fast- food producing

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firms have advertised their products in such a manner that drag the attention of children and
generate their organizational profit. Children has considered as the important aspect of any
family and food habit of any family depends on the preference of their children. With the
purpose of making their children happy, parents usually meet every demands of their children by
purchasing foods of their choice. This has gradually put adverse effect on children’s health. As
per the research, new media has contributed a lot in generating brand awareness and customer
engagement of any food industry among the youth and children present in the society. Though, it
has affect the food and beverage industry in positive way new media has several negative impact
on children’ s health and drag the population in the dark side of life by raising different life
endangering diseases like obesity, hormonal disorders and similar ones.
In respect of any organization and brand, social media can consider as the most effective
tool for generating brand reputation and helps the company to attain their desired success
competing different industries present in the same market. Different companies like Lays, Coca-
Cola, Starbucks have spent huge money in conducting different social media marketing (SMM)
campaign to promote their brand marketing and identify the actual demand of different
customers (Whiting and Deshpande, 2014). This helps the firm to generate new ideas to improve
their product’s quality and adopt new ideas to launch different new items as lays has promoted
new flavors based on customer’s expectations. According to the results derived from different
researches, it has observed that Social Media Marketing plays a vital role in generating product
awareness and helps in engaging wide range of buyers. Social Media Marketing has helped these
above-mentioned companies to identify their consumers demand and improve their brand
according to different requirements of them. Social Media Marketing has helped the company in
maintaining good relationship with their main target consumers and helps to generate good

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reputation of the brand through positive word of mouth. Beside all the positive results derived
from the use of social media marketing, there are several negative impacts of the same if Social
Media is not use carefully. As per other researches, it has observed that inappropriate use of
social media may put serious negative impact on the brand image of the company. In order to
gain positive impact of social media, company should needs to identify their strengths and
advantages and utilize it to promote as their key component for advertising their brand through
social media. Thus, it can state that social media is act as the essential element of achieving
company’s success.
Wide number of surveys and researches has conducted to find out the impact of social
media on generating the brand marketing of small business organizations. As per the reports
derived from three hundred researches on the small- scale business organizations of Maine, it has
identified that use of different social networking sites like Facebook, Linked In, and Twitter has
generated positive results on creating positive brand awareness, and helps in maintaining good
relations with their clients(Jones, Borgman and Ulusoy, 2015). Besides creating brand
awareness, social media helps those small business organizations in improving their product’s
quality and services and thus helps in creating good brand publicity. This report has presented
different challenges of using social media in small businesses like women has less knowledge
about accessing social networking sites and thus affect their business adversely, inappropriate
use of social media may generate negative impact on this business. On the contrary, though
social media has wide number of positive impacts on generating or enriching small businesses, it
can state that social media has positive impact on generating profit margin of small businesses.
Social media has positive impact on maintaining good relationship between the
organization and its target consumers. Social media has helped in providing updated information

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of the organization and helps in generating customer’s feedback (Dijkmans, Kerkhof and
Beukeboom, 2015). Social media has helped in improvising company’s services and product’s
quality to satisfy customer’s demand. This helps the company to promote positive impact
through different customer present in the market. As per the report of different researches, it can
conclude that social media has helped in generating companies profit by maintaining good
relation with target customers.
Social media has played a vital role in developing brand marketing, customer generation
and helped in enriching company’s profit. Social media has provided huge opportunities to
promote new ideas and helped in launching new items produced by the company. Thus, social
media helps in increasing the company’s sales rate as well as helped in becoming threat for the
other similar industries present in the market (Sajid, 2016). Social media helps in spreading
company’s good reputation among wide range of customers and thus helps in generating target
customers of that firm. As per different research it can noticed that social media has immense
power in establishing a stable position of the company in the global market, and helps in
increasing their profit level. Thus, it can state that social media has considered as the most
effective tool in generating company’s profit.
Conclusion
After analyzing six different articles, this paper concludes that social media has immense
impact on developing brand equity, brand marketing of any luxury organization. Social media
has helped in generating profit level of any company or brand like GUCCI, Dior, Starbucks and
other similar brands. It has helped in generating profit margin of different small-scale business
organization of Maine. It has helped in generating customer’s engagement and promoted the
brand awareness. Beside all the positive sides, social media has different disadvantages that may

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hamper the company’s reputation badly. Considering all the facts, this essay concludes if any
brand can utilize social media in an effective way, it may have the chance to achieve success in
developing good brand identity among other brands present in the market.
Reference
Dijkmans, C., Kerkhof, P. and Beukeboom, C.J., 2015. A stage to engage: Social media use and
corporate reputation. Tourism management, 47, pp.58-67.
Godey, B., Manthiou, A., Pederzoli, D., Rokka, J., Aiello, G., Donvito, R. and Singh, R., 2016.
Social media marketing efforts of luxury brands: Influence on brand equity and consumer
behavior. Journal of business research, 69(12), pp.5833-5841.
Jones, N., Borgman, R. and Ulusoy, E., 2015. Impact of social media on small
businesses. Journal of Small Business and Enterprise Development, 22(4), pp.611-632.
Kelly, B., Vandevijvere, S., Freeman, B. and Jenkin, G., 2015. New media but same old tricks:
food marketing to children in the digital age. Current obesity reports, 4(1), pp.37-45.
Sajid, S.I., 2016. Social media and its role in marketing.
Whiting, A. and Deshpande, A., 2014. Social Media Marketing: A Myth or a Necessity. Journal
of Applied Business & Economics, 16(5).