I had this problem with my other dog (a westie) and after allergy tests, shots especially made for his allergies with no permanant good results , I accidently cured it by changing his food to a grain free kind. ( I use Evo grain-free ) No more itchies, no more "hot spots" and his coat looks better than ever! Also I try children's benedryl before i would resort to steroids. They make mine pee like a racehorse and if overused can have nasty side effects on the kidneys. I would only use them if nothing else works. Has the vet seen this on your dog?