Well, first of all, I'll assume you want to keep your dog. That being decided, if there are spots in your lawn from where your dog does his duty, there is no magic way to prevent or fix the problem.
The spots are caused by the highly acidic urine from the animal. If you can, immediately flush the area with plenty of water after the dog has urinated. This may prevent the spot from dying. If this is not possible, and the area has already turned yellow, then repair is required. Rake out any old grass and use a lawn-patch material or grass seed with a little soil to bring up the level. Keep the repair moist to allow the seed to germinate.
Some sources suggest that tomato juice in the dog's food will reduce the acid in the urine, although equal amounts of sources say that won't work any better than additives available at pet stores.
Another possibility is to create a "dog-run" area that you designate as Fido's Special Spot. Don't even bother to try and grow grass in that zone!