At the same time, however, the company went to lengths to point out that restraining ad spending doesn't necessarily have to hurt brands. P&G's North
American fabric-care business, for example, cut ad spending as a share of sales by 2% over the five fiscal years ended June 30, but increased sales $900 million, boosted market share 3.5 points and
built scores for brand equity on flagship Tide to record levels, according to CFO Clayton Daley.
In a taped segment, global marketing officer Jim Stengel reported that the increased use of the marketing-mix modeling is now delivering increased marketing return on investment, and that the company's brand equity measurement is up. "There has been no corporate mandate to cut ad spending as a percent of sales," Stengel says, "only to spend all marketing money more efficiently."
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