In the field of business, marketing is one of the activities that help in making profit from an individual company. There are too many buyers, very dispersed and with different needs. Therefore, customer-oriented marketing strategy is used to see the products or services from the customer's point of view and communicate the message in the customer's language (Schade, 2007). Basically, customer-oriented marketing strategy is divided into four main stages: market segmentation, market targeting, positioning and differentiation (refer to Appendix 1, Figure 1). The first step is market segmentation. According to Cravens and Piercy (2009), market segmentation is the basis for superior performance and it is important to understand buyers' needs and desires when designing marketing strategy. It is a process that places buyers in a product market into subgroups and must be considered in the early stages of developing a marketing-led strategy (Cravens & Piercy, 2009). Beyond that, Cravens and Piercy also stated that segmentation is a recognized process aimed at finding subgroups of buyers within the total market. Dickson and Ginter (1987) stated that “segmentation opportunity occurs when differences in buyer demand functions allow market demand to be divided into segments, each with a distinct demand function” (pp. 1-10) . Furthermore, Kotler and Armstrong (2012) argue that there are four main segmentation variables for customer markets: geographic segmentation, demographic segmentation, psychographic segmentation, and behavioral segmentation. Coincidentally, in the study of Dickson and Ginter (2009) and Kotler and Armstrong (2012), the requirement for effective segmentation must be feasible, substantial and beneficial, identifiable...... middle of paper ..... .ng (10th ed.). New York, NY: McGraw-Hill. Kotler, P. & Armstrong, G. (2012). Principle of Marketing (14th ed.). Upper Saddle River, NJ: Prentice-Hall. McInne, G. (2014). 5 levels of market differentiation strategies. Retrieved from http://www.slideshare.net/GrahamMcInnes1/5-levels-of-market-differentiation-strategiesPerreault, Jr., W.D., Cannon, J.P., & McCarthy, E.J. (2008). Grassroots Marketing: An Approach to Marketing Strategy Planning (16th ed.). New York, NY: McGraw-Hill. Ries, A., & Trout, J. (2001). Positioning: The Battle for Your Mind (20th ed.). Boston, MA: McGraw-HillSchade, J. (2007). Customer-oriented marketing by listening to who really makes the decisions: your customer. Retrieved from http://www.jrsconsulting.net/freearticles_14.htmlWard, S. (2014). Targeted marketing. Retrieved from http://sbinfocanada.about.com/od/marketing/g/targetmarketing.htm