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<i> Times Staff and Wire Reports</i>

Merger Creates Agency: The Los Angeles office of D’Arcy Masius Benton & Bowles has merged with Pacific Marketing Group, a San Francisco sales promotion firm, to form Highway One. The principals of privately held Pacific Marketing will own a majority stake in the new agency. The move is indicative of a trend. Consumer products companies have been shifting their advertising dollars into promotional efforts. By combining promotional marketing with conventional advertising, Highway One hopes to keep clients under one roof. The new agency, with offices in Los Angeles and San Francisco, has billings of $250 million.

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