Social media marketing has become the most powerful mode for companies seeking to reach out to their prospects and customers. Given the wide reach of SMM, firms are increasingly relying on it, In order to achieve their marketing & branding objectives .By replacing the traditional ways of marketing, social media has provided new opportunities to firms to engage consumers in social interaction on the internet. The objective of the current study is to investigate the potential of social media marketing as an effective marketing tool that helps them to affect perception of customers & ultimately influence their purchase decisions. The study aims to highlight the advantages that companies gain by effective use of SMM. The research suggests that the engagement with SMM has a positive effect on consumers brand awareness & purchase intentions. The article also analyses the negative influence of companies‘ social media activities which affect the overall commitment & involvement of the consumers. Thus the study provides a mode for uncovering managerial challenges & for planning better responses to consumers‘ social media activities.