Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Contact app?

Mac App:

Contacts -> contacts on iPhone
Calendar > calendar on iPhone
Notes > notes on iphone
Reminder > reminders on iPhone.

The only thing you need iTunes for is to sync apps or music. The rest of the items above appear in their respective apps. Update one it gets update on the other.

Again, you have to be signed in on iCloud on both the Mac and iPhone with the same account.

You can also edit your contacts @ iCloud.com Sign in using your Apple ID there.
 
Figured out the problem. The Yahoo mail was clicked on under groups inside the telephone contacts. This allowed all my yahoo email correspondendts to show up as telephone contacts. Weird. I shut off and all the useless contacts dissapeared.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.