And Scunthorpe will now be missing goalkeeper Joe Murphy and skipper Andy Crosby through suspension for the tough trip to Millwall on Friday night.
We are now in the mix," he explained. "We said in this middle part of the season, can we stay in the race?
"That's what it is all about; can we deal with the injuries, can we deal with the suspensions, can we deal with the adverse results?
"You sit down, analyse, reflect. We have done ever-so well, it is our first league defeat (since I took charge). Now it is how we respond."
Blackpool boss Simon Grayson said: “This was a massive result for us against a Scunthorpe team who are second in the table.
“This is always a difficult place to come, and I was delighted not only with the result but also with the manner in which it came.
“We knew all about their two strikers, Billy Sharp and Andy Keogh, who are rated among the best in this division.
“But we knew too that if we could keep them quiet then we would have a great chance of winning the game, because we have terrific pace on the break.”