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1. Create subfolders and store your contacts in the appropriate subfolders. This can be a o.k. way to do it if each contact will only appear in one subfolder or if you need to grant permissions to other users to access these subfolders and you want them to be isolated from each other.
2. Use categories. Assign each contact to one or more categories and then create custom views to allow you to see the different categories in various ways. This is usually the best solution to this problem.