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In this tutorial, the video shows how to send personalized PDF documents with a watermark containing the client's name using mail merge in Microsoft Word. Microsoft's watermarking feature does not support merge fields, so an alternative method is used. The process involves using a Word template document, a data source such as an Excel spreadsheet, and creating a watermark. The mail merge feature is used to connect the data source and personalize the document with merge fields. A text box is used instead of the native watermark option to achieve this.