The paper presents an overview and an analysis of literature related to specificity of university marketing, possibilities for market segmentation and main prerequisites for effective marketing strategy formulation. It is concluded that traditional marketing tools and principles aren‘t immediately applicable to respond to the needs of higher education institutions, because they‘re based on seller-consumer models. The role of higher education institutions should be conceptualized through models of partnership and cooperation. It is also important for institutions of higher education to be able to identify the needs of various student sub-groups and respond to those via differentiated marketing strategies. The paper proposes to apply target marketing tools, as they do not require increases in expenditures. Equally, it is important to note that marketing in higher education is a profoundly complex process which needs careful formulation and evaluation, including selection of appropriate evaluation indicators. Only by taking to account all these considerations can an institution of higher education expect to achieve its marketing goals, satisfaction of its stakeholders and their meaningful feedback. Well formulated marketing strategies play an important role in the process of quality assurance, achievement of institutional goals and modernization.