Funny story, while working for a large company in 2012, that may or may not have written this article. I followed these exact steps on the advice (via podcast) of Merlin Mann who talked about how a sane person gets a raise and keeps their dignity and job.

I didn't get the raise.

Two months later I took a better paying job at a different company. Upon putting in my two weeks notice, the management came to me and asked "Why didn't you bring a competing offer, we would have given you a raise if you did?" and then offered to give me a raise in order to stay on. They also said it was common in the industry.

I was happy to leave after this. I wouldn't change anything I did, leaving was the best thing I've ever done for my career.

If you feel like you are providing more value than your employer is paying you for and they won't give you a raise. Then apply at other companies and ask for the rate you want. If you are worth what you think you're worth you will get a job offer close to that rate, otherwise you won't and you'll learn the value that the market places on your skills.