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A dog will lick the rectal region for various reasons. I'll go over all of them but the fact that there is a odor as well does sound like it is an anal gland issue and I'll talk a little more about that below.
The anal glands are 2 sacs on either side of the anus at about the 4' o'clock and 8 o'clock positions. If your dog is continually licking their anus and dragging it, it could also indicate that they are full. If licking the area expresses the fluid, then there is no need for the dog to drag their rear on the ground. The anal gland fluid has an odor that can range from mildly unpleasant to absolutely unbearable but many do describe it as a fishy odor. This problem can usually be resolved by emptying out the glands. To empty them or express them, you will want to cover the area with a tissue and press your finger on the dog's anal glands with an upward motion. . A foul smelling liquid should come out. Most people do it in the bath tub to catch any fluid that squirts If nothing comes out and your dog appears to be in pain, you should take him to the Vet. Your vet can do this easily, as he is experienced at it.
Excellent site on anal glands
Tapeworm infestation might cause a dog to lick the area around the rectum excessively. Tapeworms release segments that exit the anus and spread tapeworm eggs into the environment. They can cause severe itching in some dogs. They can usually be seen in the stool and are small about 1/2 inch moving things. If the stool has dried, they look like rice in the stool or stuck in the hair around the anus. Drontal plus is also a prescription product and is used for the treatment of Tapeworms, though dewormers with praziquantel work well against tapeworms.
The last is allergic condition -- flea allergy being the most common allergy leading to itching around the base of the tail and rectal region. You usually do see your dog scratching other areas of the body and may even see hair loss in areas.
I do think it is likely to be an anal gland issue from your description. Many owners do empty the anal glands themselves. Also professional groomer do this all the time and may be less expensive than your vet. Most do it as part of the grooming process, so you might take that option if you are unable to get them to express.
If this is an ongoing issue, getting his feces firmed up will allow the glands to naturally express on his firm fecal matter. Adding canned pumpkin to his food will accomplish this if there is no other issue causing diarrhea such as parasites or protozoan infection.
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