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In this video tutorial, Mark Davis of Optimum Technology Transfer explains how to use the REPLACE function in Excel. He emphasizes the importance of text or string functions for cleaning and tidying data, noting that he has created several videos on this topic. The focus of this session is on the REPLACE function, which he will demonstrate using a series of order IDs. Each order ID consists of two numbers, followed by four characters, and then three additional numbers. Mark aims to standardize these order IDs by replacing the varying four characters with a consistent value.