The 54-year-old says the season would be deemed a failure if the club finished in the spot it currently occupies in the Bundesliga.
BVB finished runner-up in the Bundesliga and the Champions League last term, but an injury curse that sees five key first team regulars on the sidelines at present has had an alarming effect on the club's fortunes during this campaign.
Though Dortmund qualified for the knockout stages of Europe thanks to a dramatic final game of group stage play, the team's league form has been decidedly inconsistent and Watzke is eyeing an improvement on its current position.
The 54-year-old told SZ: "At the moment fourth place is acceptable, but we would not be satisfied with a fourth place finish at Borussia Dortmund. That is not our objective.
"We want to qualify directly for the Champions League, ideally, as this is not out of our reach and of course I expect us to play better in the second half of the season."
Any hope of wrestling the Bundesliga title off Pep Guardiola's Bayern Munich has seemingly evaporated, with the Bavarians already 12 points clear of Dortmund at the top of the table.