Added value, from a financial point of view, represents the difference between the value of goods and services that are used as inputs to a production process and the value of the outputs of that process.

Added value, from a marketing perspective, means adding value that turns a commodity into a branded product. Branded products and services can also have value added by enhancing their design, characteristics or range of features.

Commodities are basically unprocessed, raw products such as crude oil, meat carcasses, fresh fruit and cotton bolls. To add value to a commodity it needs to be processed in some way to turn it into a branded product that consumers are willing to pay more for than the raw product. For example, a food processor could purchase milk from a dairy farmer and make it into cheese. The packaged cheese has added value and becomes a branded good.

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