Digital sculpting
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Digital sculpting is the use of tools to push, pull, smooth, grab, pinch or otherwise manipulate a digital object as if it were made of a real-life substance such as clay.
Many of the more popular digital sculpting tools are 'multiresolution' - able to edit the mesh at different levels of detail and have the changes at one level propagate to higher and lower levels of model detail.
Frequently a digital pen such as those offered by Wacom are used. This specialized hardware has pressure sensitivity which can provide added functionality for most sculpting software.
There are a number of multiresolution digital sculpting tools available including Blender 2.43, Mudbox, Silo 2 (beta), Hexagon, ZBrush, Modo, and 3D-Brush.