Set up nested distribution groups in Exchange/Outlook? (Master, Sub1, Sub2, etc.)

In my Vertical Response account, I maintain a "Master List" - I can then "tag" users to be part of sub lists.  That way, I can mail everyone, or just "Sub1" list, "Sub2" list, etc.

I imagine Exchange has something to replicate this setup - can it be done within public folders?  distribution lists?  sharepoint?

My first thought was to make a "Master" distribution list and then use categories to sort through that list - but I don't know that there's anyway to quickly mail a subsection of categories.

Or if I make a public folder of contacts, and then subfolders ("categories") - can I email the "Main" folder to go to everyone - and then pick a subfolder to only send to that grouping?

Any other thoughts?  

blueteamAsked:
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MegaNuk3Commented:
Yep, use nested DL/ DG
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blueteamAuthor Commented:
So I can set up DL "Sub1", "Sub1", etc. and then make "Main" which will mail "Sub1", "Sub2", etc.?

Can the same thing be done with categories somehow?
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blueteamAuthor Commented:
The reason I ask about the categories is because what if someone is a member of more than one sub group - I don't think that could be handled in nested groups without duplicating data.
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NavdeepCommented:
If you use mailbox store instead of Public folder, Then even if user is member of multiple subs he/she will receive an email. If you go as per Public Folder setup then user need to check manually each folder which concerns him
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MegaNuk3Commented:
Exchange is intelligent enough to only send you one message even if you are a member of several layers in nested DL
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