It is important, at least in my mind, to distinguish clearly between the techniques involved in chipping and pitching. If you watch golf on television you will hear the word “chip” used for just about any shot around the green. Every now and then an announcer will describe a shot as a “pitch”, but “chipping” usually rules the day. For purposes of instruction and so that my students will not be confused about what technique to use from certain areas I separate pitching and chipping thusly: Pitching is any shot around the green that is struck with a swing that involves wrist cock and leg movement. Chipping, on the other hand, does not use wrist cock or leg movement. The chip is a putting stroke made with an iron, hybrid, or fairway metal and is reserved for shots from fairway height grass (or a perfect lie in the light rough), unless I am using a hybrid, which is effective out of light rough. The chip, because of the lack of power sources, is usable only for short carry distances right around the green. I almost never use the chip to fly the ball more than 20 feet or so (6 or 7 paces), and I usually try to land the ball about 3-5 feet onto the green, unless I am using a hybrid, where I usually don’t land the ball on the green, but instead skitter the ball through the fringe.
The chip is the next shot to play after the putter has been eliminated as a possibility. There are various reasons not to putt from close in to the green: there could be a pitch mark directly in your line, the grass on the fringe may be long, wet, uneven, or even very grainy, or there could be either a sprinkler head or sand or loose dirt in your line. At this point you are looking for the next easiest shot to play, and that is not a pitch shot, as any shot requiring height and carry also requires wrist cock and lower body movement, which complicates things much more than a chip does. You may not have much opportunity to use the chip, but it is a good shot to have in your bag, as easier is always better than harder.