Ah, got it.

Here is what I was looking for and I found it in the link you provided:
"You can also drag a menu item a little to the right to make it a submenu, to create menus with hierarchy. You'll see when the position of the drop target shifts over to portray the nested placement".

For anyone else stumbling upon this post, this is does in the Menu area of WP-Admin. Another key piece of information is the Navigation Menu is comprised of Categories and Pages.

The menu contains both categories and pages.

If you're running the latest version of the theme (v5.0), then you can use the new WordPress menu system as outlined in the link I provided above.

I don't think I stated my question correctly.

In your live demo on themeforest.com, if you hover over "Ministries" a drop down appears with more links. Are these are Categories or Pages? I cannot get the drop down to appear.

Step 13 in your instructions say "STEP 13 - Sub pages are automatically hidden in the main navigation and are displayed on the parent page sidebar. To create sub pages, navigate to "attributes" on the "add new" page and select the appropriate parent page."

I cannot find any 'attributes'.

Posts appear in every category they are listed in, including parent categories.

For more info about using WordPress menus, visit this link: http://tinyurl.com/2623vq6

When I built the site I did not set up any sub categories.
I want to add some and they are not appear.

I'm going to Posts>Categories>Add New>Setting the parent category>

When I start a new post and add it to the new sub category it appears on the parents categories pages?

I tried adding the category to the Navigation Menu but that didn't change my results.

How do I add "drop down" categories?