Lessons Behind Duolingo And What They Teach Us About Marketing Planning

Why Duolingo Can Teach Us A Lot About Marketing Planning

When was the last time you saw a language-learning app's mascot fly off the handle on TikTok, pretending to kidnap Dua Lipa or having a full-on existential crisis because you skipped your Spanish language lesson? If you've spent any time on social media lately, you've probably encountered Duo the Owl - and if you haven't, well, you're missing out on one of the most brilliantly chaotic marketing campaigns of our generation.

Duo's demented behaviour isn't actually lunatic at all. It's the result of some seriously clever marketing planning. And that's exactly what we're covering today - how businesses figure out who to talk to, what to say, and how to position themselves in a market that's already jam-packed with proposals, companies and competitors.

What Is Marketing Planning?

Marketing planning is basically the systematic process of researching and analysing potential markets and devising appropriate marketing strategies to achieve an organization's marketing objectives. Think of it as your sat nav for business success- without it, you're just driving around aimlessly hoping you'll stumble upon the right destination.

The main role of marketing planning is pretty straightforward: identify and meet the needs and preferences of customers and your target audience. When McDonald's decided to launch their "Famous Orders" campaign with celebrities like Travis Scott and BTS, they didn't just randomly pick some famous people and see what happened. They planned it. They researched which celebrities would resonate with which customer segments. They analysed the market. They created strategies. And it worked - their campaign reportedly driving hundreds of millions in incremental sales.

Here's why marketing planning should be treated like a real priority:

It gives you direction. The marketing plan provides a written guide for a business to follow in marketing its products. No one's just improvising and hoping it works (well, successful businesses aren't, anyway).

It aligns with the bigger picture. As the marketing plan is one part of the organisation's overall business plan, managers can align marketing goals and strategies with the overall aims and objectives of the organisation. Your marketing team can't be off doing their own thing while the rest of the company is heading in a completely different direction and having a day off.

It helps everyone else do their jobs. The operations department uses sales forecasts to create a production schedule. The finance department uses the forecasts to create budgets. The human resources department uses sales forecasts for workforce planning. It all connects.

Market research is crucial. Without market research, you're basically guessing. And in business, expensive guesses tend to end badly. Market research allows the business to have a better understanding of its customers and the market in which it competes.

It Matters Not Trying to Sell to Everyone: Market Segmentation

Let's talk about why Nike doesn't try to sell the same trainers to your gran as they do to professional athletes. (Though, some grans look absolutely great in their Air Force 1s.)

Market segmentation is the process of splitting a market into distinct consumer groups to better understand their needs. A market segment is a distinct group of customers with similar characteristics and similar needs or wants - basically a sub-group within a larger market.

IB Business Management Real-life Example: Think about Spotify for a second. They've got billions of songs and millions of users. If they just threw all their music at everyone and said "here you go, enjoy," it would be chaos. Instead, they segment their market brilliantly. They've got "Discover Weekly" playlists for music explorers, "Release Radar" for people who follow specific artists, "Workout" playlists for gym enthusiasts, "Sleep" playlists for insomniacs, and even "Sad Indie" playlists for when you're feeling a bit emotional at 2am. Each segment has different needs, and Spotify meets them with different products.

Four Main Ways You Can Divide Your Market

1. Demographic Segmentation

This focuses on population structures such as age, gender, ethnicity, marital status, language, family size, and religion. It's probably the most common type because the data is relatively easy to gather.

IB Business Management Real-life example: TikTok dominates the market with Gen Z (people born after 1997), while Facebook has become more popular with older generations. According to recent data, nearly 100% of Gen Z consumers aged 16-22 own a smartphone, and 54% say they spend at least 4 hours per day on social media. That's why brands are pouring money into TikTok campaigns if they want to reach young people - it's where the demographic actually is.

2. Geographic Segmentation

This is based on the physical location of the customer and includes consideration of the natural environment and climate of the location.

IB Business Management Real-life example: McDonald's adapts its menu based on regional tastes. In Canada, you can get Spicy Buffalo Chicken Poutine (because, Canada). In Japan, there's the Teriyaki Chicken Filet-O. In India, where many people don't eat beef, McDonald's offers the McAloo Tikki burger (a spiced potato patty). Same brand, completely different products based on geography. It's useful when target markets have different preferences based on where they're located.

3. Psychographic Segmentation

This focuses on personality traits, lifestyles, and attitudes - basically the psychological stuff that makes people choose.

IB Business Management Real-life example: The entire sustainability movement in fashion. Brands like Patagonia specifically target consumers who value environmental responsibility and ethical production. Their customers aren't just buying a jacket; they're buying into a lifestyle and set of values. According to 2024 market research, sustainability, wellness, and minimalism are massive values driving consumers right now, especially among younger shoppers.

4. Socio-economic Segmentation

This seeks to classify consumers according to their income, profession, or education. Businesses can then devise different marketing mixes targeted at each market segment.

IB Business Management Real-life example: Look at the coffee market. You've got Nescafé instant coffee for budget-conscious students (we've all been there), Costa or Starbucks for the middle market who want a decent coffee experience, and then Blue Bottle Coffee charging premium prices for single-origin, ethically sourced, artisanal brews that taste like... well, coffee, but expensive coffee.

Why Is Segmenting Relevant?

Market segmentation allows businesses to gain greater knowledge about their customers. This knowledge is likely to create more cost-effective and successful marketing. Think about it - without market segmentation, a firm's marketing mix might be completely inappropriate for its potential market. Imagine trying to sell luxury watches using the same marketing approach you'd use for budget alarm clocks. It would be a disaster.

Market segmentation can be useful in identifying new business opportunities, such as finding an unfilled niche in the market.

IB Business Management Real-life example: When Fenty Beauty launched in 2017, they identified a massive gap in the foundation shade range market. While other brands offered maybe 10-20 shades, Fenty launched with 40, specifically targeting customers who had been completely ignored by mainstream beauty brands. Genius segmentation, massive success.

However (and there's always a however in IB Business Management), market segmentation only generates a limited number of groupings, with potential stereotyping of customers. Some customers may not fit neatly into these categories. Not everyone in Gen Z behaves the same way, despite what marketing departments might hope.

Targeting: Actually Picking Your People

So you've segmented your market into nice neat groups. Now what? This is where targeting comes in.

Targeting is the practice of devising an appropriate marketing mix and marketing strategies for different market segments. Once you've identified your segments, you pick which ones you actually want to focus on - because to be honest, you can't be everything to everyone.

A target market is a particular market segment that a business can focus its marketing effort on. It's acknowledging that customers are different in ways such as demographic factors based on characteristics including religion, gender, or marital status.

How Brands Actually Do This

Take Bumble, the dating app. In 2023, reports indicated a decline in Gen Z's use of dating apps (apparently, young people got tired of swiping). Bumble could have panicked, but instead they focused their marketing specifically on what resonated with their target audience: dating in your early 20s - a time full of firsts, self-discovery, and navigating relationships. They didn't try to appeal to everyone; they doubled down on their core target market with messaging that spoke directly to their experiences.

Or look at Crocs. Yes, those rubber clogs no one wanted years ago and that your parents might wear in the garden. In India throughout 2024, Crocs went hard on Gen Z targeting. They onboarded Bollywood's rising stars Vedang Raina (from Netflix's The Archies) and Rasha Thadani as part of their #CrocsSquad. Both stars are Gen Z themselves, bringing authentic appeal to their audience. The brand also partnered with influencers like Shantanu Maheshwari and Ruhee Dosani for their 'Splash Your Style' campaign, showcasing Crocs as a symbol of personal style rather than just functional footwear.

Why Is Targeting Significant?

Targeting enables a business to fine-tune its marketing strategy by devising an appropriate product, price, place, and promotional mix for each market segment. This offers more opportunities for higher sales and growth for the business.

It can also be cost-effective if targeting leads to an efficient use of the organisation's resources in conducting successful and justified marketing activities. Instead of spending millions on broad advertising campaigns that reach loads of people who don't care, you can be more efficient and spend less reaching the exact people who actually want your product.

Consumer profiles typically include a person's age, gender, marital status, education, income level, and spending patterns. Knowledge of consumer profiles is an important consideration when devising the marketing mix so that businesses can target these groups more effectively.

Ultimately, the purpose of market segmentation and targeting is to allow firms to generate greater sales and higher profits. Being more customer-focused enables businesses to improve the cost-effectiveness of their marketing, while increasing sales, market share, and profits.

Positioning: Finding Your Spot in the Market

Right, so you know who you're talking to. Now you need to figure out where you actually stand compared to everyone else who's also trying to talk to them. Enter the position map (also called a perceptual map, because apparently one name wasn't confusing enough).

A position map is a visual representation of customers' perception of a product relative to its competitors, using variables such as price and quality. It's basically a graph that shows where your brand sits compared to the competition, and more importantly, where customers think you sit.

How Position Maps Work

Position maps use two axes (like a normal graph from maths, remember those?). The most common variables are price (low to high) and quality (low to high), but you can use any two attributes that matter to customers.

Let's map out the UK fashion market:

High Price + High Quality = Premium Products

• Think Burberry, Mulberry, or Vivienne Westwood

• Customers perceive these as high quality but expect to pay for it

• Example: Gucci positions itself in the luxury, trendy quadrant - high price, cutting-edge fashion

Low Price + High Quality = Bargain Products

• This is Zara's sweet spot

• They found success by targeting the "affordable and trendy" quadrant

• Appeals to young, fashion-conscious shoppers who want the latest styles without the luxury price tag

• Warning though: This is a short-term tactic to boost sales and gain brand awareness but is not sustainable (you can't keep offering high quality at low prices forever - the maths doesn't work)

High Price + Low Quality = Cowboy Products

• Products that are perceived by customers to offer low quality but at a high price

• While such products can maximise sales in the short term, they are not sustainable

• Customers aren't stupid - once they realise they're being ripped off, they won't come back

Low Price + Low Quality = Economy Brands

• Supermarket own-branded products often sit here

• Think Tesco Value or Asda Smart Price

• Cleaning products, drinks, canned foods - functional, cheap, gets the job done

Real Position Map: The Smartphone Wars

Let's look at how smartphone brands are actually positioned:

Premium (High Price, High Quality):

• Apple iPhone and Samsung Galaxy sit at the top

• Customers perceive them as premium, high-quality smartphones with cutting-edge features

Middle Market (Moderate Price, Mid-Range Features):

• Google Pixel and OnePlus phones position themselves here

• Good quality, lots of features, but more affordable than the premium brands

Economy (Low Price, Basic Features):

• Nokia and Motorola budget phones sit at the bottom

• Low prices, basic features, for customers who just need a phone that works

What Do You Do With This Information?

Having a clearer idea of customer perceptions, and therefore a firm's position in the market, helps the business to improve its marketing strategies. In turn, this can help to increase sales revenue, market share, and profits.

If a firm finds its position on a position map differs from what the business envisaged or strived for, it needs to reposition the product or brand by appealing to a different market segment or by executing an improved marketing mix.

IB Business Management Real-life example: Starbucks has positioned itself as a premium café chain over the years. Getting a Starbucks cup with your name written on it was, believe it or not, quite trendy a few years ago (remember that phase?). But Starbucks doesn't just rest on their laurels. They keep adapting to evolving customer tastes and preferences - from vegan coffees and food choices to environment-friendly positioning with their reusable cup programme. They launched their own app and rewards program to strengthen customer loyalty. That's repositioning in action - staying premium but adapting what "premium" means as customer values change.

The Coffee Shop Position Map

Let's map the UK coffee market because, let's face it, we're all experts in coffee consumption:

La Colombe Single Origin Coffee & Blue Bottle Coffee:

• Strong taste, high prices

• Premium positioning for coffee connoisseurs

• You're not just buying coffee; you're buying an experience

Costa & Starbucks:

• Middle of the map

• Moderate taste, moderate prices

• Reliable, familiar, everywhere you look

Caribou Coffee & Eight O'Clock Coffee:

• Weak taste, low prices

• Budget-friendly, functional

• Coffee that does the job without breaking the bank

The Nike Effect: When All Three Come Together

Let's bring it all together with Nike, because they're genuinely quite good at this stuff.

Segmentation: Nike uses incredibly sophisticated segmentation. They don't just look at demographics; they use contextual segmentation, where real-time factors like customer mood, weather, or location shape their targeting. Their 2024 marketing shows they segment by sport type (runners vs. basketball players vs. footballers), by skill level (professional athletes vs. casual exercisers), and by values (sustainability-conscious customers vs. performance-focused buyers).

Targeting: Nike's "Run for the Oceans" campaign in 2024 specifically targeted environmentally conscious consumers who also care about fitness. They encouraged people worldwide to participate in virtual and in-person running events to raise awareness about ocean pollution. Perfect targeting - reaching people who value both athletic performance and environmental activism.

Positioning: Nike positions itself differently across segments. For professional athletes, they're about peak performance and cutting-edge technology. For their "Future Forward" campaign featuring eco-friendly trainers made from recycled materials, they positioned themselves as sustainable and inclusive, appealing to younger consumers who care about environmental impact. Same brand, different positioning for different target markets.

So, Why Do I Have To Study All This?

Look, you might be thinking "this is all well and good, but why do I need to know this?" Fair question undoubtedly. Here's why:

You're a consumer. Every single day, companies are using these exact strategies to try to get you to buy their stuff. Understanding segmentation, targeting, and positioning means you can see through the marketing and make more informed decisions about where your money goes.

You might start a business. Whether it's a side hustle now or a proper company later, if you don't understand your market segments, your target customers, and where you sit compared to competitors, you're basically throwing darts blindfolded and hoping for the best. Let me tell you a secret, it doesn't really work.

The world runs on this stuff. From political campaigns, to your favourite sports team, from charity fundraising to your favourite brands' social media strategies - it's all built on these principles. Understanding them means understanding how the modern world actually operates and works.

The IB Business Management Lesson

Marketing planning isn't just about creating pretty adverts or having a funny social media presence (though Duolingo has proven that helps). It's about:

1. Understanding your market through proper research

2. Segmenting that market into meaningful groups

3. Targeting the segments where you can actually win

4. Positioning yourself clearly against competitors

When Duolingo's mascot goes full chaos mode on TikTok, it's not random. They've identified their target market (Gen Z language learners), segmented by psychographic factors (people who respond to humour and meme culture), targeted them on the platforms where they actually are (TikTok, Instagram), and positioned themselves as the fun, slightly wild alternative to boring traditional language learning.

And that, my students, is marketing planning in action.

IB Business Management Exam Corner:

• Marketing planning is the systematic process of researching markets and devising strategies to achieve marketing objectives

• Market segmentation splits markets into distinct consumer groups (demographic, geographic, psychographic, socio-economic)

• A target market is a particular market segment a business focuses its efforts on

• Targeting involves devising appropriate marketing mixes for each segment

• Position maps visually show where products sit relative to competitors on variables like price and quality

• Premium products = high quality, high price

• Bargain products = high quality, low price (unsustainable)

• Cowboy products = low quality, high price (unsustainable)

• Economy products = low quality, low price

• Businesses reposition when customer perception differs from their intended market position

Stay well,