At its core, a menu is nothing more than a list of links or actions. As we've discussed, web standards mandate that the HTML markup gives structure to the content of the web page. Accordingly, you should always use a tag that is appropriate to the meaning of the content. For a list of unordered items, a UL tag serves the purpose best because lists were designed to store a series of items.
All three examples below are lists of links. They all share identical markup:
<ul>
<li><a href="#">Customers</a></li>
<li><a href="#">Members</a></li>
<li><a href="#">Dealers</a></li>
<li><a href="#">Distributors</a></li>
</ul>
This is a list:
... and this is a list:
... and this is a list, too!
The only difference is that the second and third examples have additional styling to give them the appearance of a menu ... they look different based on the rules applied to the specific list.
As you can see, CSS properties can be applied to a list, giving it a dramatically different appearance from its default appearance.
Summary
Lists can, and should, be used to for graphical menus.
The content of each list item can be a styled link ... more on this later.
Resources
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Listamatic
& Listamatic2
: Sample List Styles. A great resource for inspiration and ideas. Max Design.