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In this tutorial, the presenter demonstrates how to insert a watermark in Microsoft Word, ideal for protecting sensitive documents, such as a secret recipe. The tutorial covers both preset and customizable watermark options. Using a chocolate chip cookie recipe as an example, the presenter emphasizes the importance of keeping this information secure. To add a watermark, users should click on the "Design" tab in the top ribbon, then select "Watermark" on the right side. The interface offers various preset watermark categories, including confidential and disclaimer options, making it straightforward to enhance document security.