To differentiate the function x^2(x+1)(x-2)^7, start by combining the first two parts into a single polynomial expression. Then, apply the product rule for differentiation to the resulting product of the two polynomials. The Leibniz rule can be used for more complex cases with multiple factors, allowing for differentiation without extensive multiplication. The discussion emphasizes that for simple polynomials, the process remains manageable. This method provides a clear approach to handling polynomial differentiation efficiently.