The 'market' will stay. The need for companies to reach that market will stay. But methods will change.
Could design thinking be a new marketing method? Marketing 2.0? Will design thinking be integrated within the more traditional methods? Or will traditional marketing disappear and will design thinking take over?

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After seeing the conferences of Mediafuturist its clear to me that design thinking can help envision solutions to marketing, but trend watching and futuristic forecast are not necessarily design oriented. Marketing will have to get in touch with content providers and generators, collaborative technology and tune up with culture change; since marketing is not a way of thinking but a value generating practice it has to adapt and incorporate new mind technologies.
It is difficult to say if traditional marketing will disappear, considering that the traditional television commercials still reaches the American consumer of all age groups. but i agree there will need to be a hybrid of how to market your attributes to the consumers, but i don't think design thinking will integrate into traditional methods. I vision it will be the opposite, we will use traditional methods as the tools to our design thinking methodologies. But as usual that takes time to trickle down from individuals to large organizations to see the value of the results.
To respond to the title of your question. Digital Marketing and Web 2.0 reflects elements of design thinking. Their are companies in this space (such as FoxP2) who employ a number of processes similar to design thinking in their creative process. However to call design thinking marketing 2.0, I believe, may limit design thinking as I believe it has a broader focus.

I would like to conclude with two observations:

1. Marketing 2.0, Digital Marketing, Web 2.0, PR 2.0 all these concepts I believe you are correct in you theory that they exibit elements of design thinking. However I believe that they may only implement the spirit of design thinking without the structure which is what makes design thinking a sustainable creative process, so there is room for improvement (not sure if this is the best word to use...)

2. Design thinking can be so much more than just marketing. I am very keen to apply design thinking to some of the internal processes of our oganisation to innovate process within the organisation that have become problematic or over beuracratic. Stanford D School has some interesting points in this area.
As someone who went from Marketer to Experience Planner/Designer, most marketers tend to focus on the known, safer analytical aspects of the experience. They're very uncomfortable with the unknown and the idea of investing large amounts of budget on design research, with it's emphasis on hands off, low control of outcomes to try to discover what we don't already know. Even though they can see that this makes sense.

I see Marketing as owning wider business strategy and providing the analysis of a large set of complexity at the market level, acting as the prism through which designers and marketers can look together, establishing where we should place the emphasis of more time consuming, qualitative field research to inform design thinking.

Ultimately, marketing needs to stop trying to own everything (especially speaking for the customer) and start respecting design as a discipline in its own right. At the same time, as Designers we must work extra hard to communicate these new disciplines clearly, simply and linked to benefits that help Marketing.
A little bit of creative/stand out humor and novelty in anything--ads especially, works when all else puts one to sleep or otherwise fails. When/as one is engaged in something which tweeks the brain, then and there they are off the grid of daily grind and bad world news and will be ready to engage more of themselves in your something they perhaps did not think or know they needed. Add on some good value and integrity (and on the extreme end, helps them to improve their personal lives), you will have them remember you.
I don't know or much care about marketing. I think 'design thinking' is a recognition that there's a "third way" (per Nigel Cross). There's science; there's the arts; and there's design. I think DT is really a mindset that is at its best when its innate (just like some are "born scientists" and others are "born artists"). If DT ends up helping "marketing," so much the better.
Traditional marketing is a subset of strategy whereas design thinking is strategy. Marketing, therefor, and in particular, advertising, is a downstream discipline that is predominantly concerned with implementation, and often divorced or semi detached from strategy.

On an single axis with strategy at one end (X) and implementation at the other (Y), Y is a very crowded space occupied by a self sustaining community of clients and agencies, both with short term objectives that focuses attention on tactical delivery. This is why so much marketing simply misses the point and why businesses are now questioning the value they get from marketing when, for considerably less spend, they could get to know what their customers really think/feel/know/desire etc.

Design thinking profoundly affects the user experience of products and services in a way that marketing can never do. More people are selecting the goods and services that provide the experience they require at a value they feel is fair. In the process they are ignoring marketing. It won't happen overnight, but the rise of design thinking will mean the erosion of marketing's prominence, and the demise of many practices that focus on implementation.
Sean,

I agree. And I know it's a words-game but one could argue traditional marketing is slowly being replaced by a new form of marketing. Marketing will not disappear but dissolve and transform, just like other disciplines such as internal communications. Marketing efforts will be run by multidisciplinary teams who will start projects with building empathy. etc.
I like that. Dissolve and transform. I think it's already under way:)
I think design thinking is a paradigm rather than a method. I think this is also a result of the current society that is less hierarchical and more networked. Marketing has to change in this society the most because of social networks and the internet. Marketing always was limited to certain mass media, and people had limited media to learn about products or services. Now the possibilities and information people can obtain are endless. If you don't deliver your promise people will know this, and they will spread the message. I think the future of marketing is to be honest about the product and your (modest) promise and deliver a very good user experience. People will find out about it if you offer something remarkable.

Now back to design thinking. This is crucial if you want to connect your strategy to your promise (brand) and the design of your products or services.
I think if you look at the original meaning of marketing, that it provides value to consumers, then design thinking is very similar. The basic marketing process (that begins with studying and unlocking the manifest & latent needs of consumers, then developing offerings that satisfy those needs and creating and implementing price, promos and place strategies that support the offering in a manner that are resonant and relevant to the consumers) is in essence the same as design thinking. Unfortunately, most marketers and marketing organizations have seem to have forgotten to embody this principle in its entirety, instead focusing on slivers of the process (mostly tactical marketing implementation or continuing what has worked in the past). This, I think is the reason why some, if not a lot of people seem to think marketing and design thinking are different from one another.

Hi Aaron,

I agree. And it's not about one thing replacing the other. The balance is shifting as part of a slow evolutionary process.

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