You are on the right track. 'Literary' elements include about everything you can think of in a written piece:
the theme of the story (like 'revenge' in Hamlet, for instance);
the story line or plot (what happens to whom and why);
the setting (and this includes both the physical setting and the time or period in which the story takes place– along with the customs appertaining);
the characters (both their created personalities and the way in which the author portrays them);
the author's viewpoint on any of these;
the literary techniques and devices that the author uses to create his piece and express his viewpoint;
and the overall impression that the finished work makes on the reader– its genre, its message, its art. This last to me is also a literary element... or at least the cumulative effect of all of them!
Generally, a good thesis and its statement will incorporate at least two and probably 3 of these aspects: "A interacts with B to create C for the reader" is one common template for utilizing three literary elements.