Social media plays a vital role in marketing and creating relationships with customers. Most of the businesses are beginning to use social media as a means of marketing. Social media is an emerging phenomenon in business marketing and public relations (PR). Even though the speed of adaptability of social media as a marketing and PR tool by businesses is relatively low the trend is constantly growing. Various companies are incorporating social media in their marketing strategies to connect with their customers and prospects. Social media can be utilized to perform different tasks of marketing and communication such as marketing intelligence, sentiment research, PR, marketing communications, customer management etc. Most experts and authors in the area of social media marketing and PR are former online marketers who have been working in the field since its inception. This research paper tries to evaluate the applicability of social media for corporate marketing and PR purposes.