Hello Robynee and welcome to PSG.
I completely agree with gedstar in that the pen tool is an absolute essential tool to learn and would be the best tool for this job. However, with Photoshop there are many ways to accomplish effects.
Here's one way.
Once you have your product lined up......
You can create the 'magnified' effect with the Elliptical Marquee Tool and the Pen or Polygonal Lasso Tool.
On separate layers, using the Elliptical Marquee Tool create the two circles of the mag effect. Fill them with the color of choice.
Again on a separate layer, Use the Pen Tool or the Polygonal Lasso Tool to bridge the gap between the two ellipses.
Fill with the same color.......
Once you have all three layers to your liking, highlight them and make a duplicate of the three using Cmd/Cntrl + J
While the duplicates are still highlighted, Merge them by hitting Cmd/Cntrl + E
Turn off the original layers.
Now it's only a matter of lowering the 'mag effect' layers opacity and punching some holes over the original product and the magnified view.
Note: I made some assumptions about what your level of Ps experience and intentionally left out some steps. If you have have any questions please don't hesitate to ask.