There is an appliqué design set in the DBC section, that can be used on banners similar to the one posted by smithandsmith recently. You might find it in the DBC catalogue. I will give you the link.

Unfortunately unlike built-in alphabets you can not arrange the separate letters in your machine. The only way I can think of when you don't own embroidery software is printing templates of the letters, cutting them out, arranging them on your fabric and marking the centres for correct placement, just like you would combining other designs.
Come to think of it I wonder whether you could print templates without software!
Not much help, is it?

perhaps you can use these letters, they are free

Hi there,
Sending you a PM
Please reply and then I will forward via email.

Is this what you are wanting.

Hugs Yvonne

1. This post has links to several applique alphas free.
2. This post has links to 5x7 applique numbers but several of them are full alpha links.