Analyzing the Impact of Social Media on Business and Marketing

This literature review explores the significant impact of social media on business and marketing. It defines social media as a crucial element in modern business, emphasizing its role in marketing and brand building. The report analyzes the positive effects, such as increased brand awareness, customer engagement, and sales growth. It also acknowledges the negative aspects, including potential damage to brand image, privacy concerns, and the difficulty in measuring ROI. The review examines various studies and perspectives on social media's influence, concluding that while social media offers substantial benefits for business and marketing, it also presents challenges that require careful management and strategic implementation. The report highlights the importance of understanding the dynamics of social media to effectively leverage its potential while mitigating associated risks.

LITERATURE REVIEW

Table of Contents
INTRODUCTION...........................................................................................................................3
Background and objectives..............................................................................................................3
Literature review..............................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

Topic: Effect of social media on business and marketing
INTRODUCTION
Social media is one of the recent and trending concept of today's economy. It is a part of
digital technology that is being used by many companies and business. It is one of the essential
element of every business and marketing department of the company (Poghosyan, 2020). In-fact
it is used as a mode of marketing that have a great and significant impact over the business of the
companies. It helps the business to grown and become well-known brand in the market and
among the customers. This report will throw a light on the concept of social media and its
significant effect over the business and marketing.
Background and objectives
Along with changing trends of marketing and mode of operation of business in the
economy, social media is one of the most emerging technique and mode which has significant
effect over the business. It is one of the best practice by which companies can promote their
business along with marketing their product. Since in the world of globalization and
technological advancement social media is one of the best mode by which companies can make
advertisement on social media application including Facebook, Instagram, twitter and various
other. Through this mode and technique, companies can target the customers from anywhere and
all around the world.
Aim:
The aim of this report is to analyse the effect of social media on business and marketing.
Objectives:
To discuss the concept of social media.
To evaluate the effect of social media on business.
To analyse the effect of social media on marketing.
Literature review
Concept of social media
As per the views of Appel and et.al., (2020) social media can be defined as computer
driven technology that can be used to share ideas, thoughts, and information with the help of
virtual network among large masses and community. It is one of the latest and most trending
approach by which any information or thoughts can be shared among large masses with a short

span of time. Social media means the media which can be used to socialize something. It means
it is being used to share the information and ideas among the society. As it is a digitalized mode
of sharing information so execution of social media is solely depends upon the use of electronic
devices which may includes computes, laptops, mobiles and various others.
Likewise, Garg and Pahuja (2020) elucidates that social media is a virtual mode of
sharing information and data among the people at large. It is one of the best mode of promoting
the business of the company. Through the concept of social media, business can make
relationship with the customers which will again help the business to expand and grab more
customer share. Social media can be approached through the mode of social media application
including Facebook, twitter and various others.
Effect of social media on business
Tajvidi and Karami (2017) illuminates that social media has a great effect over the
business of the companies. It helps the business to grow and achieve success. It assists the
business to expand their share and presence. Since, customers are the key player of the corporate
world so in order to make them satisfied it is very essential that they have personalized
experience with the business. Thus, it leads the business to be personalized with their customers.
In addition, of that it raise the loyalty of business toward the customers. This means that business
can create their own page over the social media platform whereby they can make interaction with
their customer along with making clarity and transparency. Social media also helps the business
in raising their performance along with increasing customer experience. This means that through
social media customer can freely share their views with the companies. Similarly, social media
raise the sales and revenue of the business in terms of raising customer's share.
On the other hand Assensoh-Kodua (2019) states that apart from positive effect social
media also puts certain negative and adverse effect over the business. As it is one of the broad
and wide coverage concept where a small mistake from the companies side will destroy the
entire brand image of the business. This means that ait is very difficult for the business to erase
any message once posted and spread. Likewise, it is not possible that the return on investment
regarding social media can be measured. As if the company will make any investment regarding
the execution of social media then it would not be possible to measure the actual return on
investment concerned with social media by the business. Since, employees are the representative

of the company so a positive approach and impact of employees over the social media will help
the business to develop their image among the general mass. This has indirectly raised the
dependency of business over their employees. In addition, of this one of the biggest and major
adverse impact of social media over the business is lack of control. Since social media is solely
considered with users or customers that company and business control them. It means it will
move in that direction where customers of the company will let it to move.
Ilavarasan, Kar and Gupta (2018) also shed a light on some other positive aspects of
social media over the business in terms of raising the performance of business due to positive
response towards the feedback. This means that through social media business got the chance to
know their customer's view which by giving consideration can raise the performance level of
business which will ultimately helps to accomplish the main objective. Social media also helps
the business to share information along with updates regarding their new and upcoming products
and services. It acts like an advertisement but it does not include such high cost as it is being
required in advertising over any other platform. Thus, along with a short spending of cost the
brand awareness of the business can be raised through the implementation of social media
practice.
Dwivedi and et.al., (2019) also said that apart from these positive impacts, social media
has more negative effect over the business. Since, it requires continuous monitoring, using of
social media by any business requires continuous activeness over the social sites. Likewise,
privacy is also a major concern that is associated with social media and business situation. Since,
social media is a open platform so privacy concern is the major issue that business usually face
while adopting social media for the promotion. As it is a fact that the approach and reach of
social media is being spread over a larger section of population. But dependency of business only
over the social media will let them to escape some major section of the society. This means that
it is not essential that every individual will be active over social media platform so absence of
those individual will lead to have an effect over the profit percentage of business of companies.
Effect of social media on marketing
As per the views of Bilgin (2018), social media is one of the key element of marketing
that has raised the standard of marketing. Since, marketing is concerned with the making of
promotion of the products of the companies. In the same way social media helps the companies
in executing the functioning of marketing. As social media is having a greater coverage over the

customers and population so social media itself act as a mode of marketing. As social media has
interpersonal interaction with customers so it works in the direction of word of mouth. This
means that from one people to another it is being circulated and popularized among people.
Thus, it again leads in the way of advertisement which is a major form of marketing.
On the contrary to this Alalwan and et.al., (2017) argues that social media also puts
negative and adverse effect over the marketing. As it is a main mode of marketing, but due to
less controlling power over social media it sometime destroys the image of company and
marketing too. This means that any wrong and adverse feedback of any customer over the social
media sites will direct impact over the growth and success percentage of company as well as
marketing. Although, marketing through social media is free of cost but it consumes a lot of time
in order to execute it through social media. Since time is not free and due to greater requirement
of time marketing through social media is no worth.
CONCLUSION
From the above report it is concluded that social media plays an important role in the
sector of business and marketing. It is the key of success that helps the business to grow and
accomplish their objective in the form of raising the share of the customers along with earning
high proportion of sales and revenues. Likewise, social itself act as a mode of marketing and
helps the sector to explore more along with widening the scope. This report also summarize that
apart from these positive aspects, social media also adversely affect and put negative effect over
both the business and the marketing in terms of raising security issue, controlling issue and
various other.

REFERENCES
Books and journals
Alalwan, and et.al., 2017. Social media in marketing: A review and analysis of the existing
literature. Telematics and Informatics. 34(7). pp.1177-1190.
Appel, and et.al., 2020. The future of social media in marketing. Journal of the Academy of
Marketing Science. 48(1). pp.79-95.
Assensoh-Kodua, A., 2019. This thing of social media! Going business or socialisation? Solving
the great dilemma. Foresight.
Bilgin, Y., 2018. The effect of social media marketing activities on brand awareness, brand
image and brand loyalty. Business & Management Studies: An International
Journal. 6(1). pp.128-148.
Dwivedi, and et.al., 2019, September. Use of social media by b2b companies: systematic
literature review and suggestions for future research. In Conference on e-Business, e-
Services and e-Society (pp. 345-355). Springer, Cham.
Garg, P. and Pahuja, S., 2020. Social media: concept, role, categories, trends, social media and
AI, impact on youth, careers, recommendations. In Managing Social Media Practices in
the Digital Economy (pp. 172-192). IGI Global.
Ilavarasan, V., Kar, A. and Gupta, M.P., 2018. Social media and business practices in emerging
markets: still unexplored. Journal of Advances in Management Research.
Poghosyan, M.V., 2020. THE IMPORTANCE OF SOCIAL MEDIA MARKETING IN
BUSINESS. In АКТУАЛЬНЫЕ ВОПРОСЫ ПРАВА, ЭКОНОМИКИ И
УПРАВЛЕНИЯ (pp. 41-45).
Tajvidi, R. and Karami, A., 2017. The effect of social media on firm performance. Computers in
Human Behavior, p.105174.
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