<input id="input" style="width:200px" value="Replace THIS in text">
<button id="button">Replace THIS</button>

<script>
button.onclick = () => {
  let pos = input.value.indexOf("THIS");
  if (pos >= 0) {
    input.setRangeText("*THIS*", pos, pos + 4, "select");
    input.focus(); // focus to make selection visible
  }
};
</script>