This is an extremely simplified version of how to use vinyl or a sheet protector and a wet or dry erase marker to help you position appliqué pieces onto your backgrounds. I also use it for lettering placement when embroidering words onto a project.
I do a lot of character appliqué . . characters with attitude. The attitude is usually conveyed in a facial expression, position of eyes or mouth for example . . . or with a certain position of the body, tilt of the head, or a raised foot (see Witchie in the wall hanging). Most patterns show a Layout of how the pieces fit together. My very simplified example is from this Witchie Portrait pattern.
I'll use the pouch design as a quick example.
Take a piece of vinyl, or more simply, a sheet protector and place it over the pattern layout.
With a wet or dry erase marker, trace the position of the design, including facial features.
Below you can see I have traced the pattern and moved the sheet protector to the side so that you see the tracing. Now simply position the vinyl on top of your project background fabric. Lift the vinyl and position your appliqué pieces in line with the tracing. With a disappearing ink marker draw the facial expressions in line with your tracing. This works wonderfully with any appliqué project whether it's character, flowers, houses etc.
There are many methods for transferring Lettering. I am usually in a rush so I use this vinyl method for first of all, figuring out how and where i want lettering to appear when i'm creating a design. It's easy to erase! When i am satisfied, i lay it over my project, lift and draw it onto the fabric with a disappearing ink marker and then stitch.
I hope you find this useful. Try it out . . . and happy stitching everyone!