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When creating a logo design proposal document, including in-situ visuals is essential to illustrate the logo's application in real-life contexts. The presenter demonstrates this process using Illustrator, highlighting a typical proposal document for a music festival logo. The document features several pages showcasing how the logo can be utilized visually, including its display on a flag. This playful format is noted as a valuable addition to the proposal. The video aims to provide a flag template that can be utilized to effectively present the logo design.