iOS doesn't let you create contact groups from an iPhone or iPad. We're in iOS 7.1.1 and this feature is still conspicuously missing. In order to create contact groups, you have to rely on third-party apps or on iCloud.com (the web interface).
Using third-party apps isn't necessarily the best solution as sometimes these cost money. The iCloud.com way is free, obviously, and since most of us have access to a computer, it's the easier method.
The general method we follow does two things:
- Create and edit groups on iCloud.com
- Let iCloud sync them to your iPhone/iPad
#1. Create and Edit Groups on iCloud.com
- Open the web browser and go to http://iCloud.com
- Login to your iCloud account
- Click on the Contacts icon. You will be shown the address book.
- From the bottom of the sidebar/pane, click on “+”
- Tap “New Group”
- Give the group a name
- Now, from the second pane (middle one), click and drag contacts to the group you just created. Add all the contacts that you want to add to the group.
That's it. You've now created and edited the group.
Make sure your iPhone or iPad is connected to Wi-fi (or LTE). Open the Phone app and wait for the sync to start. This is indicated, usually, by the rotating circle on the status bar. After a while, tap on the Contacts menu (bottom). You should see a Groups link on the top-left.Tapping this shows you the group you just created.
Technically, groups aren't yet a useful feature on iOS 7.x because they lack any functionality. Except, of course, where you create exceptions for Do Not Disturb.
With Groups, you can also set displays in the phone book to show only the group members (as against all of your contacts). Again, this is not so much of a useful feature.