Demonstration in teaching involves visually showing students how to perform a process or concept. There are three guiding principles for effective demonstrations: 1) establish rapport with students to create a comfortable learning environment, 2) assume students have no prior knowledge of the topic to ensure thorough explanations, and 3) highlight key points where errors are common or tricks are important. Effective demonstrations also involve planning objectives, materials, and sequencing, as well as checking for student understanding during and after the presentation.