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The video tutorial demonstrates how to create a new table by joining two existing tables using a join table. This process is essential for reporting sales performance on categories using category names instead of category numbers. Category names can only be found in the product table, so a new table is created by joining the transaction detail table and product table. By using Query Editor, users can easily join the two tables by selecting them and ensuring they are properly joined based on the product ID. Finally, users can select the desired values from the newly created table on the left-hand side.