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Hello. Thanks for the question.
For the rash, I usually treat with a topical anti-inflammatory (Betagen spray) and an oral antibiotic (Cephalexin). If you just want to use something over the counter, you could use a steroid cream or spray. You could also use Benadryl spray. These both have anti-inflammatory effects locally.
To get him to stop licking/ sucking on himself, you'll have to get an e-collar (lamp shade collar). This is not uncommon with skin rashes. It's also not an uncommon sign in male dogs. They can have tendencies to masturbate. It's disturbing and tough to stop, but it happens. The best thing is to distract them when they're going to do it and then use positive reinforcement when they focus their attention elsewhere.
I hope this helps, let me know if you have any other questions.
You would need to get the antibiotic from a vet. Clarithromycin is not one we use with any routine in dogs.
If you're not going to take him in, I would just use a topical anti-inflammatory spray or cream. you could also use a topical triple antibiotic like Neosporin.