In Setup 1 the liquid is not agitated because of which the temperature of the entire liquid is not raised to appropriate temperature. Only the temperature around the hot rod is raised rest of the area temperature remains the same. Which can be seen in the figure 1
Figure 1
In Setup 2 the liquid is agitated because of which the temperature of the entire liquid is raised to appropriate temperature. Not only the temperature around the hot rod is raised but also the temperature of the remaining liquid is increased. Which can be seen in the figure 2
Figure 2