Dortmund hope to rebound in crunch Newcastle Champions League clash
Riding high after a 1-0 win at St James Park in October, Dortmund came plummeting down to earth on Saturday, thrashed 4-0 by a Harry Kane-inspired Bayern.
"It was very disappointing and frustrating," Terzic told reporters on Monday, revealing his side had a "very open and very honest analysis" of the match on Sunday.
After the game, midfielder Julian Brandt said his side lacked "courage and something in our pants" against Bayern, while goalkeeper Gregor Kobel said he was "fuming" following the performance.
Terzic however said his side were unified and had put the disappointment behind them.
"Our focus now is on moving forward."
Dortmund had high hopes against an undermanned Bayern but were blown off the park and have now not beaten their southern rivals in the league since 2018.
The loss means Terzic's previously unbeaten side sit seven points off leaders Bayer Leverkusen after just 10 league match days, well off the pace in the title race.
Dortmund can take a massive step towards qualifying for the Champions League knockout rounds with a win over Newcastle.
Emerging from a group which also includes Paris Saint-Germain and last season's semi-finalists AC Milan would be an impressive feat.
Newcastle have again found form after the loss to Dortmund and have beaten both Manchester United and Arsenal in the lead-up to Tuesday's game.
Terzic said Newcastle "were not happy with their performance two weeks ago" and would improve.
"If they're better, then we're going to have to be better".
The 41-year-old coach expected an "open and intense game" and said "we don't need to be warned about Newcastle - we know how good they are".
Along with Newcastle's visit on Tuesday, Dortmund travel to Milan and host PSG in their remaining group fixtures.
"If we want to qualify for the knockout stage, we have to win our home matches.
"We will do everything we can to use our chance to win at home tomorrow and take an important step forward in this group."
Dortmund could be without captain Emre Can, who is still recovering from a knee injury sustained in the previous match in England.
Left-back Ramy Bensebaini was also a doubt with a thigh problem.