On reading the iTunesConnect_DeveloperGuide.pdf, i came across the term binary. This is the paragraph found in the pdf:
To submit your application throu
To submit an app update, just log on to iTunes Connect (itunesconnect.apple.com) and click on "Manage Applications". Click on the application you want to update. From there, there is the icon of the app and next to it, a button that says "Add Version". Click it, and from there just follow iTunes Connect's advice! If you submit a NEW application with the same name but a different version, it will just add a NEW application to the app store (if it doesn't give you an error)! Then, v1.0 and v1.1 will BOTH be available for download.