People who love Menorca always have their own personal favourite resort.
I stay inland in a quiet villa every year now, hire a car and go wherever we fancy that day, but the following resorts are lovely, pretty, family friendly, with a good selection of accommodation and restaurants etc:-
Son Bou - longest beach on the Island, very pretty, watersports, small waterpark, a bowling alley etc. The beach is 4km long, and nudist away from the main drag.
Arenal d'en Castell - gorgeous horseshoe bay, watersports, we loved it here when DS was small.
Santo Tomas - near Son Bou, quieter, a bit more upmarket.
Cala Galdana - another beautiful horseshoe bay, upmarket, but the beach can get very busy in high season.
Punta Prima - smallish resort but with a huge Insotel behind it, really nice, again we loved it here when DS was small.
Cala'n Bosch - a marina, crazy golf, mini water park. Not my favourite, but loads of people seem to love it.
Cala en Porter - geared up for Brits so consequently more affordable, popular though.
I would always recommend going s/c or B&B if you can afford it. The all-inclusive option, although cheaper is ruining many holidays destinations and the food in Menorca is so good that you'll want to try it out.