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Start by running the dryer for 10 minutes. This will soften the lipstick and make it easier to remove. You can alternatively use a hairdryer to heat up the specific spot which is being affected. This may be easier and more efficient to do. With the drum hot, wipe the lipstick with a soft, dry cloth. Switch which part of the cloth you wipe with frequently, to keep from spreading the lipstick any more. You can also try using a makeup wipe to remove the lipstick. Unplug the dryer and then soak a cotton ball with rubbing alcohol. Use this to wipe off the remaining lipstick. When you've removed as much of it as you can, rinse with a wet rag or paper towels. With the dryer rinsed out, run a load of old towels through a cycle in the dryer to remove any product which might still remain.
Warm the dryer. Wipe off as much as you can. Clean out the remaining product with rubbing alcohol. Run a cycle with old towels.