If it does not cease, demand it to cease and state there will be consequences.
If it then does not cease, do pin point strikes against any Hamas targets that have the lowest chance of civilian casualty.
If it then does not cease, do pin point strikes against the areas launching the rockets and their hide outs no matter the possability of civilian casualty.
If it continues to occur, continue to ramp up the aggression.
You can not simply sit at the "ask them nicely to stop" stage and nothing more. Israel's government has a duty to keep its people safe. I don't care if its "only 1 died" or any of that other bull****...if rockets are coming in daily its a state of perpetual fear and danger and a persons government should NOT simply allow this to continue happening. If it did, the people should rise against the government.
You don't just start with sending missiles back, but it should definitly get to that point if it doesn't stop.
It sucks there's causalities on the other side, but it is the state of war. Civilian casualties do happen, and when Hamas specifically operates inside civilian areas that doesn't help it. It is not israel's fault that is where Hamas hides itself, and if extra civilians die because of that it is Hamas fault for making the choice to opperate from that area instead of other areas because Israel is simply doing a justified retaliation, attacking that which attacks them.
In part, civilian casualities are necessary. If they're doing nothing, they're tacitly approving of the unprovoked attacks by Hamas. If they have issues with the attacks by israel, the answer is simple...raise up and run Hamas out.
If a guy punches me or a member of my family in the face, I will go at him full out. If I end up hurting him so much that he can't work and provide with his family, that is not my fault...that is his for doing such aggression. Do I feel bad for his family? Sure. But perhaps they should not be putting all their stock on a guy that goes around punching people in the face.