She may also have "ringworm" which is a fungal infection of the skin. It often begins a small red pimple and spreads out in a ring pattern from there. It does itch. It can be contagious. It is usually treated easily and effectively with an an anti-fungal medication.
Lily:
I'm not sure, but your daughter might have a superfical skin infection called impetigo. I'd apply bacitracin or neosporin ointment (OTC), and see your pediatrician. Not serious, but should be treated.
Best.
Dr. Rockoff