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In this tutorial, the speaker demonstrates how to add or remove a watermark in a Word 2013 document. By accessing the design tab in the ribbon, users can go to the page background section to find options for adding or removing a watermark. There are prefilled options like confidential, draft, sample, or do not copy, as well as the ability to create a custom watermark with text or images, and change the font and color. Clicking apply will save the changes, allowing for personalized watermarks to be added to documents.