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In this video tutorial, the narrator demonstrates how to add or remove a watermark in a Word 2013 document. The process is the same for both actions. Firstly, navigate to the design tab in the ribbon. Then go to the page background section and find the watermark option in the drop-down menu. Choose to remove the watermark or select from pre-filled options like "confidential," "draft," or "sample." Alternatively, you can create a custom watermark, adding pictures or text and customizing the font and color. Click apply when you are done. The narrator shows an example with a custom watermark that says "ASAP."