The polarization and strain response of ferroelectric materials at fields below the macroscopic coercive field is of a paramount importance for the operation of many electronic devices. The response of real ferroelectric and related materials is in general complex and difficult to interpret. The reason for this is that many processes in a ferroelectric material contribute to its properties, often concurrently. Examples include motion of ferroelectric and ferroelastic domains, presence of domains within domains, dynamics of different types of polar nano-entities, interaction of polar nano-entities (e.g., polar nanoregions in relaxors) with the strain and polarization within domains, motion of defects and rearrangement of defect clusters and their interaction with polarization and strain. One signature of these processes is nonlinearity of the strain and polarization. Most ferroelectrics exhibit nonlinear response at all practical field levels meaning that the apparent material coefficients depend on the amplitude of the driving excitation. In this paper we show that an investigation of nonlinear behavior is a sensitive way to study various mechanisms operating in dielectric and piezoelectric materials. We review the basic formalism of the nonlinear description of polarization and strain, give a physical interpretation of different terms and illustrate this approach on numerous examples of relaxors, relaxor ferroelectrics, hard and soft ferroelectrics, and morphotropic phase boundary compositions. An experimental approach based on a lock-in technique that is well-suited for such studies is also discussed. I. INTRODUCTION Modern technology demands improved functionality, reliability and tolerances of electronic components. Dielectric and piezoelectric nonlinearities present opportunities and challenges in this regard. From the application point of view, nonlinearities can be desirable, for example in tunable filters and antennas, positive