Our industry uses the term In-System Programming (ISP) in a general sense. ISP is applicable to programmable logic, as well as programmable Non-Volatile Memory (NVM). However, an additional term will be used very often In-Application Programming (IAP). There are subtle yet significant differences between ISP and IAP when microcontrollers are involved.
ISP of memory means that the MCU is off-line and not involved while memory is being programmed.
For IAP, the MCU participates in programming the memory, which is important for systems that must be online while updating firmware. Often, ISP is well suited for manufacturing, while IAP is appropriate for field updates.
Keep in mind that IAP can only program the memory sections of the controller and not the configuration and programmable logic portions.
With ISP, the entire controller can be erased or programmed.