how do you use the terrain tools?

Im reading a Unity3D game development book and it is telling me to use the terrain tool in the inspector to add me terrain.jpg as the terrain texture splat map, but i dont know how?

1- terrain=> create terrain
2- select the terrain on the scene hierarchy
3- access the inspector and click the brush icon (the one in the center) of the “Terrain (script)” component
4- Edit textures button=> Add textures
5- drag your terrain texture from the project into the splat slot in the little window that opens