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In this tutorial, the presenter demonstrates how to display catalog item variables in an email notification using a script. They first created a catalog item with two variables: "requester name" (a reference type) and "state" (a select box type). The notification set up for this catalog item is conditioned to trigger only when the specific custom catalog item is requested, preventing it from activating with every request. The presenter emphasizes selecting appropriate conditions for the notification to ensure it runs only under the desired circumstances. The tutorial also covers the customization of the email subject and body using HTML formatting.