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In this Microsoft Word 2016 tutorial, the instructor explains how to insert bookmarks and cross-references into a Word document. By using heading styles, you can easily mark and navigate through different sections of the document. Bookmarks can be inserted to quickly find important sections, while cross-references allow for easy jumps to different parts of the document. The tutorial demonstrates the process by inserting a bookmark in a specific heading and explains the benefit of having quick access to frequently visited sections.