OK I'll try to take a different slant than the answers in the duplicate question.
A document (let's say it is saved in UTF-8)
\documentclass{article}
%\usepackage[utf8]{inputenc}
%\usepackage[T1]{fontenc}
\begin{document}
Söméţhìñĝ
\end{document}
This produces

Because tex does not decode the UTF-8 input and all the accented letters make multi-byte sequences using characters above 127 and the default font encoding (OT1) has no characters in those slots so the log says
Missing character: There is no � in font cmr10!
Missing character: There is no � in font cmr10!
Missing character: There is no � in font cmr10!
Missing character: There is no � in font cmr10!
Missing character: There is no � in font cmr10!
Missing character: There is no � in font cmr10!
Missing character: There is no � in font cmr10!
Missing character: There is no � in font cmr10!
Missing character: There is no � in font cmr10!
Missing character: There is no � in font cmr10!
Missing character: There is no � in font cmr10!
Missing character: There is no � in font cmr10!
Note the number of missing character relates to the number of bytes in the the internal UTF8 representation.
If we use inputenc to declare the encoding
you get

which looks OK but if you have a long text you will find that (a) hyphenation is not working and (b) you can not search for this text in the resulting pdf as the font encoding OT1 has no accented letters the ö is rendered as a normal o with an accent " positioned over it.
If now we declare that we want to use a different font encoding say T1 and uncomment that line then you get

which looks slightly different if you look closely but most importantly it (mostly) uses pre-constructed glyphs in the font so is searchable and hyphenation works.
Note however you can still input (thousands) of characters in UTF-8 input that do not relate to characters in the declared font encoding (which only has 256 slots) so depending on the instructions used latex will either need to "construct" something as it does for OT1 or give an error that the character is not supported or as Ulrike showed you can use different font encodings in the same document for the same input encoding to cover different ranges.
Going back to the original document save it as latin1 (iso-8859-1) encoding
\documentclass{article}
%\usepackage[latin1]{inputenc}
%\usepackage[T1]{fontenc}
\begin{document}
SöméThìñG
\end{document}
Note I had to drop two characters that can not be encoded in this input encoding even though I could typeset them with the 7-bit OT1 tex encoding above.

Declaring the latin1 input encoding to latex gets us

But as before this is constructed characters so no searching.
If you declare the input encoding to be latin1 and the font encoding to be T1 (which is not the same in general) then
