The rise of social media provides significant challenges to marketing practitioners. Some understanding of what is going on is essential for effective decision-making. The significant growth in marketing in the late 1940’s and 1950’s came about with the rise of mass production, that could provide for a huge market represented by middle America and the concomitant rise of mass media, that made it possible for manufacturers to reach a willing market. It was especially the time when advertising became an important marketing tool. A similar parallel can be drawn with the rise of web 2.0, social media and how customers interact. It is this aspect that will be first discussed followed by an example of a success and a failure story, the need for a social media planning process and certain pitfalls, conveniently termed as the seven deadly sins, that managers should seek to avoid.