need help with craters

I recently used some touch up paint to cover up a paint chip. I'm fairly new at this and I followed the instructions in the kit ( GM paint chip repair kit ) but the paint blob looks like it has craters, maybe due to air pockets?

I tried sanding it down but it didn't help at all. Anyone have any suggestions in how to get rid of them? I have included a picture if it helps. Any help would be appreciated...