Understanding factors and circumstances that create certain market environment conditions is a primary goal of any modern - oriented higher education institution that enable harmonizing the supply with current demand as well as defining appropriate marketing strategies. The process of formulating the strategy of a higher education institution, in addition to reviewing the existing services, includes identifying new opportunities, analysing relevant competitors and positioning against them and similar. The need for change in marketing strategy, that is market restructuring of a higher education institution, presents a natural consequence of economic oscillations that are result of market needs and competition dynamics. Continuous monitoring and adjustment of modern developments with the needs of the target market affect the overall perception of service quality and satisfaction of users. Thus the choice of marketing strategy involves defining the best ways of achieving the goals, keeping in mind that marketing as a business function, it should be to contribute to the improvement of educational institutions of governance process, orientation towards the market, or aligning curriculum with the needs of target groups. Education Reform in Serbia initiated all educational institutions (private and state) that market-oriented their activities, due to insufficient, inadequate application of current marketing and marketing tools. Using different combinations of marketing mix instruments can lead to achieving competitive advantage in education market. The main role of marketing strategy is to combine competences and other strategies of an educational institution, coordinate the challenges and limitations imposed by its environment and find the best ways of achieving its mission and vision.