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In this tutorial from the DesignMent channel, the host explains how to perform a mail merge using Excel files and images. The process involves using an Excel file containing details like name, designation, department, and corresponding image paths for each person. A master Word document is created with an empty table that has four columns to facilitate the merge. The video demonstrates how to link images for each person by copying their picture paths from the specified location. The tutorial emphasizes the importance of having both the Excel file and the master Word document set up correctly for the mail merge to work.