I agree that the marketing was poor. I saw several other movies in the theater in 89, and never once saw the trailer for LTK. I only saw 1 TV commercial for the movie, and that was during an ABC viewing of TMWTGG. The marketing for the 4 week old Batman was still bigger than LTK when it was released.
I mentioned to my boss about going to see the new Bond movie and his response was "There is a new Bond movie?"
I maintain one of the biggest reasons for LTK's shortcomings in the U.S. is it was basically treated as if they were going to sell it that Bond is back on reputation alone. They figured Bondmania was still alive the way it had been circa 1965 and it could sell itself rather than anticipating the audience's preference for this new wave of action and heroes.
You had the decade's biggest hero, Indy, in his highly anticipated third film with the original Bond, no less. You had a familiar old hero, Batman, in the most anticipated movie in years. And you had one of the hottest actors in the world at the time, Mel Gibson, in a sequel to a hit by the biggest action producer, Joel Silver, who also produced Die Hard, the film a lot of people point to as changing the action genre.
That was a challenge and they didn't rise to it at all. They didn't try to sell the still basically unknown Dalton to audiences or show why this series should be as good as the other films that year. It was just "Here's a new Bond film, go see it. We're established."
I don't remember a whole lot of publicity. It was covered in the film magazines and such along with the others. It wasn't shunned or anything like that. You had a Bond movie every Sunday night on ABC and MTV did do a special at the time. Strangely, there was some kind of contest that ran in the Sunday comics section as well.
But there just wasn't that much else to work with with LTK. Even with AVTAK they had one of the hottest bands on the planet associated with it along with a crazy new wave singer in it. Then you had a-ha on TLD along with the hype of the 25th anniversary and a new Bond to sell it. There was nothing there to draw people to it other than reputation, which was waning by that point.
LTK went with an old-school singer and the cast had no names at all involved to draw in that different type of attention. Even if you threw Davi in from being in The Goonies, that audience wouldn't have likely been able to see LTK. People take shots at Madonna's cameo and song in DAD, but it drew attention at least.
It seems they really learned from these mistakes when GE came around. The marketing campaign was pretty much perfect for that. Brosnan staring into the camera saying "You were expecting someone else?" could have easily interested somebody who'd never heard of Bond.