P&G WILL TEST FEES AND INCENTIVES FOR AGENCIES CONFLICT POLICY ALSO EXPECTED TO BE EASED SO SHOPS CAN BROADEN REACH.

Advertising Age, November, 1998 by Neff, Jack

Procter & Gamble Co. will test fee-based and incentive compensation systems to replace its old commission structure starting in January. The package goods giant may also relax its strict conflict policy as its Agency Relationship Renewal effort enters a second year.

Each of P&G's seven roster shops will test the new compensation with one of its assigned brands, with the test lasting through 1999-or until a ``renewal team'' of P&G executives and agency representatives determines what works best.

P&G would not divulge which brands would be involved in the test or details of the compensation systems. But it said the systems would be ``media neutral,'' designed to reward agencies for developing ``holistic marketing ideas and increased sales revenue.''...

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