The Foxes dominated the first half but failed to make the most of their chances and Blackpool made them pay by snatching the lead in the 41st minute through David Goodwillie.
But City showed why they are leading the Championship table, producing a superb second-half performance that brought them three goals for the fourth game in a row.
Ferguson said: "Leicester are a good team but I set out a game plan that had worked for 60 minutes. Then they scored a great goal and we felt sorry for ourselves and fell away, and in the end Leicester deserved the win.
"That's been the problem for us all season. We had a good result against Millwall in midweek, but it had been a long time coming. And we did well again for 60 minutes today until the lad (Riyad Mahrez) fires a great goal and after that we sat far too deep and invited Leicester on to us.
"You have got to deal with pressure in professional football. I have always been able to deal with it and I would like to think the boys in the dressing room can. We have been through a hard time since I took over.
"I have been trying my hardest since I came in and at times I have thought we were getting there and then I have been knocked down again. But it is getting closer and closer to the end of the season and we have got to be able to handle the pressure because we are still a million miles away from being safe."
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