Command entry:
Material Editor
Standard material
Shader Basic Parameters rollout
Choose Phong from the drop-down list.
Command entry:
Material Editor
Raytrace material
Raytrace Basic Parameters rollout
Shading drop-down list
Choose Phong.
Phong shading smoothes the edges between faces and renders highlights realistically for shiny, regular surfaces. This shader interpolates intensities across a face based on the averaged face normals of adjacent faces. It calculates the normal for every pixel of the face.

Phong-shaded highlights are typically less regular than Blinn highlights.
Phong shading can accurately render bump, opacity, shininess, specular, and reflection maps.
The Blinn and Phong shaders have the same basic parameters.