Yes. You type the command (or copy-and-paste it) into a "dos prompt" (a command-shell). The command shell can be started by running "CMD".
You will either have to navigate to the folder containing AVRDUDE or modify the PATH. These update the PATH on my computer so I can run AVRDUDE...
set PATH=%PATH%;C:\Arduino\arduino-0022\hardware\tools\avr\utils\bin
set PATH=%PATH%;C:\Arduino\arduino-0022\hardware\tools\avr\bin
set PATH=%PATH%;C:\arduino\arduino-0022\hardware\tools\avr\etc
Replace "C:\Arduino\arduino-0022" with the Arduino root folder on your computer.