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In this Microsoft Word 2016 tutorial, the presenter explains how to display formatting marks, which are non-printing characters that help users see various elements in their document. To enable formatting marks, users should navigate to the Home tab, find the paragraph group, and click the "Show/Hide" button. This feature is useful for tasks like formatting resumes or adhering to APA or MLA styles, as it allows users to visualize elements such as Enter presses, spaces, section breaks, and page breaks without them appearing in the printed document.