If you have two elements $g_1, g_2 \in G$, there are two ways to produce an element in $\bar{G}$:
- use the binary operation $\ast$ of $G$ to produce the element $g_1\ast g_2$ of $G$, then apply the map $\phi$ to obtain $\phi(g_1\ast g_2) \in \bar{G}$.
- apply the map $\phi$ to both $g_1$ and $g_2$ to obtain $\phi(g_1), \phi(g_2) \in \bar{G}$, then use the binary operation $\cdot$ of $\bar{G}$ to produce the element $\phi(g_1)\cdot\phi(g_2) \in \bar{G}$.
The map $\phi$ is said to preserve the binary operation if it doesn't matter which of the above two processes we use. That is, $\phi$ satisfies $\phi(g_1\ast g_2) = \phi(g_1)\cdot\phi(g_2)$ for every $g_1, g_2 \in G$. In some sense, $\phi$ maps 'products' in $G$ to 'products' in $\bar{G}$.
Here is a more abstract way of viewing the above condition using the notion of transport of structure.
For convenience, let $b : G\times G \to G$ and $\bar{b} : \bar{G}\times\bar{G} \to \bar{G}$ denote the binary operations on $G$ and $\bar{G}$ respectively. As we have a bijection $\phi : G \to \bar{G}$ we can 'pullback' the binary operation $\bar{b}$ to a binary operation $\phi^*\bar{b}$ on $G$ as follows: for $g_1, g_2 \in G$, we define
$$\phi^*\bar{b}(g_1, g_2) := \phi^{-1}(\bar{b}(\phi(g_1), \phi(g_2))).$$
Now we have two binary operations on $G$, namely $b$ and $\phi^*\bar{b}$. The condition above is equivalent to the statement that $\phi^*\bar{b} = b$ (i.e. the two binary operations are the same).
In the special case where $\bar{G} = G$, we have $\bar{b} = b$ so the condition reads $\phi^*b = b$. That is, the group operation of $G$ is preserved by (the pullback via) $\phi$.