Moving points in Z axis to distort mesh

I have generated a mesh as seen in the image, and I have been trying to move the selected points (Highlighted and Numbered) so that it distorts the mesh. Clearly kangaroo is probably not the best tool for this job. I tried selecting the points and then moving them in z axis and hoped this would act as a force object on the mesh. I am basically hoping the other points will be anchor points so the mesh distorts from them to the moving points. Also wondering home I can smooth the mesh to it produces a curved mesh? Any advice would be appreciated. Thanks