The Menu Manager manages all the navigation within your Joomla 3.0 website, the default home page, how to display your menus, what is displayed in them. You can have different types of Menu Items. Menu items are created from components installed.

To access the Menu:

• Click Menu. In the drop-down, you have Menu Manager, Main Menu and Bottom Menu.
  The Menu Manager is used to create New Menus. “Main Menu” and “Bottom Menu” were created by default using the Menu Manager.
  Since we have two menu items created for us already, let’s pick one of them to see how it works. Our pick is “Main Menu”.

Editing “Main Menu Items”.

• Click Main Menu: You will notice that two Menu items are listed. They are About and Home.
• Click About: This is where this menu item is configured. At the moment we will just be looking at the details configuration of the menu item. You can leave all other configurations just the way they are. Below are our configurable items under "details".
• Menu Item Type *:
  This tells us the type of item this menu should point to. In this case that we are editing, it points to "Single Article". Click Select close to "Single Article" to see other components that a menu can point to.
• Select Article *:
  Since our menu item type is Article, we need to select the Article we want to point our menu to. From what is shown, "About" was the Article was selected. You may Click Select to see other Articles that you can point the menu to.
• Status:
  This is where you can set the Menu item to be Published, Unpublished or Thrashed.
• Menu Location:
  Menu items are attached to a Menu, so you can choose here which of the menus this menu item is attached to.
• Parent Item:
  This is where to choose whether this menu item is a parent item(standalone) or it is a sub menu. By default Menu item Root is selected; that means this menu is a standalone menu. But if this menu is a sub menu or drop down, and then select the menu item that this menu is its sub menu.
  
  Click Save & Close.

Create A New Menu Item

Let’s create a new menu item that points to an external link to your Facebook Account.
Click Menu...then Main Menu
Click New.
In the "New" opened window, click Select in front of Menu Item Type * to pick the type of component this menu item will point to. In the pop up window, Click “System Links,” then Choose “External URL”.

We can now configure our External URL. The configuration here is just like configuring the menu item "about" that we discussed a moment ago except we have to input a Link for this menu item. So let’s say our Facebook page URL is http://Facebook.com/SpringWebHost; this URL is now what we will type as our link.
Configure every other item just as we did for "About" menu item.

Adding a New Menu.

Like I earlier said, a Menu houses menu items, so if you have the need to group some menu items under one menu, this is how you can do that. So let’s create a Menu called Policies.
Click Menu....hover your mouse over Menu Manager and click Add New Menu. In the window that opened, enter the Menu Title (Policies), Menu Type (Policies), and then the description of the Menu. Click Save & Close.
So whenever you create a New Menu Item, you can select "Policies" if the menu item falls under Policies Menu. Refer: (Menu Location: Menu items are attached to a Menu, so you can choose here which of the menus this menu item is attached to.)