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In this video tutorial, the presenter demonstrates how to insert a logo into a Microsoft Word document. To do this, you need to click on "Insert," then "Picture" and select the logo from your system. Once inserted, you can click on the logo and then "Format," followed by "Text Wrap" and "In Front of Text." This allows you to move and resize the logo as desired. The presenter creates a simple letterhead design by inserting the logo into the document.