Originally posted by: dnetmhz
New Coke
This and BetaMax are the classic examples.
New Coke is an example of how marketing was completely out of touch with the customer base. They didn't taste test with a representative sample of consumers, and focused on the packaging and messaging instead of the end product.
Betamax is an example of a superior product that lost market share to VHS because of horrible marketing. The marketing dept. knew Beta was superior to VHS, and expected consumers to pay a hefty premium for a better-quality product. Unfortunately, licensors and distributors also had to pay premiums on the tapes, and as a result fewer movies were available for rental/purchase on Beta. Also, consumers could not discern much of a quality difference on all but the newest television sets, and so they didn't understand why Beta was so expensive. Sony, in effect, priced Beta out of the market.